24/07/2024
My Views on Budget 24
📌 Something which I have been advocating for a long time precisely from 2018 that Equity Trading & investing meaning purely buying and selling of shares and Equity related instruments like Mutual Funds will be fully taxable one day which is slowly and steadily becoming a TRUTH !!
*2018 BUDGET*
short term capital gains tax of 15% and long term capital gains tax of 10% made a comeback for gains above 1 lac in equity & equity related instruments like Mutual Funds
6 years down the line
*2024 BUDGET**
short term capital gains tax of 20% and long term capital gains tax of 12.5% has been levied for gains above 1.25 lac in equity & equity related instruments like Mutual Funds
So clearly it's an increase of 5% for short term gains and 2.5% for long term gains
So one day I believe it will be taxed at the income tax slab rate to which your income belongs to, so can be upto 30% !!!
So should you stop investment in equity shares and Equity mutual funds ?
Answer is NO
But you need to tweak your Portfolio now & divert some amount to non taxable or I can say still TAX FREE OPTIONS & This will be the perfect Asset Allocation of your Assets
📌 Book the profits and pay tax whatever is payable has been my advice in last few years of Bull Run and profit so booked is to be diverted to Tax free Avenues which are still available.
So current budget advocates the same which I can put as if you don't book profits now and don't divert them to tax free Avenues then you may have to be ready to pay higher tax in future, as from 2018 we are seeing the same in tax changes
📌 Real Estate can't be an investment option to MEET THE LIFE GOALS. REAL ESTATE IS GOOD to stay in it or use it commercially. I always said this & current budget has removed indexation benefit which resulted in higher tax payment in sell of house property.
📌 EPF interest above 2.5 lacs is taxable is an eye opener for those who are neglecting for a long time Tax free Pension options available which I have suggesting for a long time.
📌 The changes in tax structure means what to me
Rich get taxed more and those who earn from share market and real estate deals will pay more tax which will be utilised by the Government for infrastructure development and for various reasons to develop the Nation which is really really a good move. I am really proud of the Respected Finance Minister and Happy that Amrut Kaal for my Bharat has really Begun ! for the VIKSIT BHARAT such tax reforms are always needed and I appreciate them.
So finally would like to conclude that
🖍️ still up to *2.5 lacs per annum* you can invest in *equity* and earn *tax free* *returns*
🖍️ & some part of your equity & mutual fund portfolio you can divert to *Tax free life long Guaranteed Pension options*
Now the time has come to live by the slogan Finest Tax Free Options for a Complete Portfolio
To know more do reach to me on phone WhatsApp or sms or mail or DM
Hemant Bokil
M.D.R.T
It's an article written by me based on my knowledge & experience in the Financial sector.The views expressed are purely my interpretation and reflect my point of view. The purpose of this article is to make an investor aware about changes and options available as on today !!
