Renowned investor D Muthukrishnan has expressed his concerns over the recent budget changes, particularly the impact on asset classes including stocks, gold and real estate.
What Happened: On Tuesday, Muthukrishnan took to Twitter to voice his disapproval of the new budget. He highlighted the increase in long-term capital gains tax for all asset classes to 12.5%, up from the previous rate of 10%.
See Also: Indian Markets In Red After Govt Hikes Capital Gains Taxes
He further pointed out that while this might seem like a cause for celebration for real estate investors, who previously paid a tax of 20% with indexation, the removal of indexation benefits across all asset classes would result in significantly larger tax outflows on the sale of real estate.
The changes Muthukrishnan is referring to were announced by Finance Minister Nirmala Sitharaman in her 2024 Union Budget announcement. The new tax regime introduced several changes aimed at providing tax relief to salaried individuals and pensioners, including an increase in standard deductions.
Ace investor Ashish Kacholia also looked disappointed by the rise in the capital gains taxes.
The budget also saw an increase in capital gains tax for financial assets, which led to a fall in the Indian markets. The short-term capital gains tax was hiked to 20% for certain financial assets and the long-term capital gains tax was increased to 12.5% from the earlier 10%.
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