Why Modi LTCG Tax is Lose - Lose situation for Investers and Govt.

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Feb 6, 2018.

  1. kharb

    kharb Well-Known Member

    Aug 15, 2015
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    Who ever might have Misguided the Govt, but introduction of LTCG Tax is A Lose - Lose Situation for Investers and Govt. First with Market Crash due to LTCG tax, Equity Cult will hit badly and Govt revenues which it was getting through STT will also nose dive. Secondly Govt disinvestment plan will either be fully Derailed or even of partially achieved, PSU stocks will be sold at deep discount prices of 31 January(in comparison that they would have been sold at elevated levels from 31 January prices due to market out performance) in all future disinvestment due to market under performance. More over market Cap loss of PSUs will be many times more than Modi LTCG Tax. This loss will always be more than any Revenue collected, which already heavily taxed Indians will pay through their nose. More over as most of new investers will be sitting on Huge Losses at the time of 2018 state elections and 2019 Loksabha polls, BJP has given a large middle class vote Bank on platter to opposition. These Anti Middle Class steps of Modi Govt will always work against BJP in future also even after their ouster in 2019 .
    Last edited: Feb 7, 2018
    Biju likes this.
  2. shakti khanduri

    shakti khanduri Active Member

    Jul 24, 2015
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    Kindly guide us what to do in such a situation,as you must have done in such earlier situations of SEVERE CORRECTION .
  3. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Mar 28, 2015
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    IMHO better to buy on dips blue chip companies.