The Union Budget holds a central position in the financial calendar, sparking increased anticipation regarding the government’s expenditure, fiscal deficit, and individual taxation.
Few things that stock market investors are anticipating:
Double Taxation on Dividends: The current taxation on shareholders’ dividends is perceived as a form of double taxation, given that the company has already paid taxes on its profits. Market participants, including influential investors like Vijay Kedia, express dissatisfaction with this policy. Anticipation and appreciation are widespread for any potential relief from this double taxation on dividends.
Policy Announcements: Expectations revolve around policy announcements or extensions, particularly focusing on extending the flagship incentive scheme for manufacturing electric vehicles (EVs) into the next financial year.
STT Removal/Reduction: Analysts are foreseeing the potential removal or reduction of the Security Transaction Tax (STT), especially in the cash market. This demand has persisted for several years.
LTCG Relief: Hopes are high for relief on Long-Term Capital Gains (LTCG) tax to incentivize increased investor participation in the stock markets. Despite being a longstanding demand, the government has not indicated any action on this front.
What are your thoughts on this?
Inviting @JayG @KunalShah @iamshrimohan @Anirudha @PravinJ @RahulDeshpande @rakesh @Naman @Nakshatra_Hanchate @Shriram @JayK @Rajesh @kuldeep to share their thoughts on budget 2024.
In an election year, I doubt the govt will bat for the stock market. It may rather go for a more populist budget that appeal to the masses by spending more on social schemes.