EY India's Tax Partner Analyses Budget 2024's Impact On Listed And Unlisted Financial Assets | NDTV Profit
Category
🗞
NewsTranscript
00:00The buyback tax, does it have any implications for companies or sectors which are doing large buybacks?
00:05I would feel that so far as companies are concerned, if dividend income was the choice between buyback,
00:11buyback still remains an attractive proposition. That's what I would feel subject to reading the fine print
00:17because the buyback tax is still a capital gains tax lesser than the normal dividend tax rate.
00:21I think overall, I would feel from an economy standpoint, from a stability, continuity, certainty standpoint,
00:28this is a very good budget. Yes, from a market standpoint, the capital gains tax changes might be a little bit of a dampener
00:34but they address the weaker sectors of the economy like agricultural growth was very weak.
00:39I think there is a lot on the agri sector. Job creation was very important from production linked incentives.
00:45We are now talking of employment linked incentives. So I think that should help as well.
00:50So from an economy standpoint, I think the stability, continuity, addressing the weak spots and continuing the growth on the rest
00:57I think is overall good for the economy and the fiscal discipline is a big macro point.
01:04I am asking him that this rationalization on term for capital gain, she said that all financial instruments will go to one year.
01:11So does it mean that even debt actually goes to one year or it still remains?
01:16Debt is actually part of, anyway it's an income. So capital gain doesn't apply.
01:21So the way I think she has put it and we look at the fine print but listed financial assets is one year.
01:26I think other she said is two years. She said unlisted financial assets will be held for two years.
01:33Correct. So listed financial assets whether it is debentures, bonds, I think that's how it is, is one year for long term
01:41and others is two years. But in bonds actually long term doesn't apply anymore. Correct.
01:45So therefore it's only equities. She said that way that listed financial assets.
01:49So I assume it will be mutual funds which are in listed equity as well as listed shares.
01:55I would presume would be one year and all other financial assets and other assets is two years.
02:00So she is trying to simplify the capital gains tax rate.