Election Results 2024: Shankar Sharma predicts LTCG, STCG tax to go down

Ace investor Shankar Sharma, who has been following the trends of the election results, stated on X (formerly Twitter) that one thing was certain: given the current situation, in which PM Modi’s NDA and the INDIA bloc are in a close battle with one another, short-term capital gains tax (STCG) and long-term capital gains tax (LTCG) might be reduced but would not be raised.

In the recent interim budget, there were no hike in STT, LTCG. On February 1, Finance Minister Nirmala Sitharaman chose not to make any modifications, keeping the capital gains structure as it is. On the other hand, there was no respite from debt taxes in the interim budget for 2024.

Presently, there is a 15 percent STCG tax if you sell listed securities, such as equity shares and units of equity-oriented mutual funds (where equity exposure exceeds 65 percent of the assets), before a year has passed. If the Securities Transaction Tax (STT) is paid at the moment that such securities are transferred, then this concessional tax rate is applicable.

When units of equity-oriented funds or listed equity shares are sold after a year, the LTCG tax becomes applicable. Any gains over 1 lakh in a year are subject to a 10% tax.

Over the weekend, exit polls predicted that the NDA would win over 350 seats. The Nifty 50 and the BSE Sensex, two benchmarkindices, both saw significant declines of more than 5% on Tuesday, following their all-time high on Monday.

On Tuesday session, the 30-share BSE Sensex ended lower by 4,389.73 points or 5.74% at 72,079.05 level while the Nifty 50 closed at 21,884.50 level, down 1,379.40 points or 5.93%.

The market continued to anticipate stability within the alliance, with the BJP emerging as the primary election victor, according to Vinod Nair, Head of Research at Geojit Financial Services, hence limiting significant medium-term downside. The rural economy will benefit from this significant shift in government policy, which is expected to put a strong emphasis on social economics.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.



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Published: 04 Jun 2024, 04:11 PM IST

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