Budget 2019: Income tax limit change, LTCG tax relief among Anand Rathi’s key expectations

By: |
New Delhi | Published: February 1, 2019 9:25:05 AM

India Union Budget 2019: Over the past four years, the government of India has undertaken various initiatives to try and improve the economy and sentiments from the scenario in the year 2014.

Budget 2019-20A policy stable environment will also help ensure that the citizens will continue to receive the benefits of the programmes that have been rolled out so far

Budget 2019: Even as the D-day of Budget 2019 arrives, and various experts share their key expectations, investment advisory firm Anand Rathi says that ensuring “policy stability” is critical for the growth of the economy. A policy stable environment will also help ensure that the citizens will continue to receive the benefits of the programmes that have been rolled out so far, Anand Rathi, Chairman, Anand Rathi Group said.

According to the expert, over the past four years, the government of India has undertaken various initiatives to try and improve the economy and sentiments from the scenario in the year 2014. In its endeavour to achieve this, the government has witnessed its share of highs and lows with decisions such as Demonetization, GST, Introduction of LTCG tax just to a name a few, he says, adding that it’s essential to strike a “winning” balance between politics and economic growth. We take a look at key expectations of Anand Rathi from Budget 2019.

Long Term Capital Gain Tax (LTCG): The government should consider withdrawing this tax. It will help improve the sentiment and make the equity market an attractive option once again.

Also Read: Budget 2019 Live: Litmus test for Modi government as Piyush Goyal goes for the final push

Securities Transaction Tax (STT): The industry is currently facing different STT levies in different types of transactions. The government should reconsider how the STT is being currently levied and if possible reduce the tax. This will help improve the equity funding and provide relief to the capital markets.

Increase Tax Exemption Limit from Rs 2.5 lakhs to Rs 5 lakhs: Currently, the citizens falling under the bracket of Rs 2.5-5 lakh bracket pay 5% tax. The government could consider giving a tax and procedural relief to this low-income group.

Introduction of Quasi Basic Scheme (QUBI): The Finance Minister could introduce this scheme to target the poorest segment of the population.

These measures would not only help address the short term liquidity challenges but also have significant positive impact in a longer-term perspective, Anand Rathi said, adding that the firm hopes that growth with stability with a long term view will be the underlying theme of any initiatives /measures/ programmes that the government wishes to roll out at this time.

For latest coverage on Budget 2019-20 log on to financialexpress.com. We bring you full coverage of Union Budget 2019 Live. Stay Connected.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition