Capital Gains Tax Increase: Continue Investing Despite New Market Taxes?

The budget’s rise in capital gains tax upset investors. The Securities Transaction Tax (STT) rise for futures and options is 0.02 and 0.1%, respectively. The sum collected from the share repurchase will now be considered a dividend. Buyback requires a capital loss write-off of the share acquisition price. Future tax increases and further adjustments are another concern for small investors. However, when we consider the advantages that the stock offers, it becomes clear that the market itself is the source of the higher tax now in place. That being said, set aside your concerns and proceed with caution while investing.

The policies in place are maintained in the first budget of Modi’s third administration. The budget contains initiatives to stabilise growth and lower the fiscal deficit. Increasing the people’s purchasing power has also been a major goal of the budget. There is a focus on increasing employment and developing skills. To create jobs, two lakh crore rupees would be spent over five years.

Companies and areas that stand to gain:

Solar: Adani Green, Tata Power, and Waree Energies will bolster the Surya Khar Mufti Bijli Yojana sector.

Banking: The ceiling for Mudra loans has also been increased.

An additional benefit will be the allotment of Rs 10 lakh crore for urban housing. SBI, Aadhaar Housing Finance, Canfin Homes, LIC Housing, HUDCO, Bank of Baroda, Bank of India, Union Bank of India, AU Small Finance Bank.

Digitisation of land data in the agriculture sector

It is also an excellent idea to provide Rs 1.52 lakh crore to the agriculture sector. CDSL, CE Info Systems, Dhanuka Agritech, Kaveri Seeds, and Genesis. Etc are expected to boom.

FMCG: With increasing employment Increase in the purchasing power of individuals will benefit FMCG and related companies. HUL, ITC, Dabur, Nestlé, Polyplex, Euflux.

Automobile:  Increase the demand for two-wheeler-entry-level passenger vehicles. Hero Moto Corp, Maruti Suzuki and TVS Motors.

Jewellery: Reduction in import duty on gold, silver and platinum will be an advantage. Titan Company, Kalyan Jewellers, Senko Gold.