Are you amazed of this title? Yes! I know I am writing this post after 10 days of budget 2018 India. I really took myself a time to breath, time to come out of shock, time to read and understand. Writing here is honestly great pleasure but updating about new trends in budget 2018 India is a responsibility as well. Budget 2017 India was a historical budget with GST, Tax exception upto 3 lacks & basically the date shifter from 28th Feb 2017 to 1st Feb 2018. That was also historical being a first combined Railway & Finance Budget in India. After freedom from British Empowerment, we are still following few of British Rules like Finance Year is From April 1st to March 31st unlike English Calender Year !! On that front budget 2018 India was bit dissapointing from Investors Point of View.
1. Whenever you are going to sell your shares for a period of 1 year or more, it's going to be called as LTCG (Long Term Capital Gain ) as discussed in previous article.
2. In Budget 2018 India, on the Feb 1st, 2018 it's expected to be applicable on/after April -1st 2018. This means equity sell before April 1st 2018 is All LTCG excempted. Yes, it's long term capital gain excepmted before April 1st 2018.
( Right from the next day huge downfall in Indian share market was noted as response to LTCG reintroduction.
3. This means Indexation 20% is no longer applicable for Mutual Funds- Equity Category.
4. Limit for LTCG is 1 Lack Ruppes.
5. Sadly, it will be applicable to Mutual Fund profits as well along with shares/stocks.
This sounds illogical as market has straight a way came down. Selling your assets at low cost is fullishness. May be earning more and paying tax and still being in benefit would sound smarter!
2. Don't Sell quity assets with revenue of more than 1 lack ruppes in finantial year 2018-19.
It's also likely that in upcoming finantial year 2019-2020 , LTCG can be called off! Every financtial budget has new things to introduce/ to change. keeping money in market without profit booking sounds risky as never knows market may remain down for months or years later! So, wise choice is stay invested in large cap companies if you can withstand. You may continue profit booking that is selling shares and receiving profit upto amount of 1 lack in finantial year 2018-2019.
Reference for this post
Official Site Income Tax India : (download pdf by clicking here)
Finance Budget India 2018 : Dissappointing for Investors
Appreciated a launch of Bidget as Farmer's Bidget. India is rich with Green Materialistic Propoerties & one should be proud of on it! But Surplus taxes, hikes in cost especially for Investors who are taking risks unlike safe go man like Bank FDs should have got a benefit. Sadly we saw the reverse situaiton. As in previous post I have mentioned it for beginners about LTCG & even in Key Term's Article we are here to update ourselves. Let me be clear, those articles are right! But As per changed in Terms proposed in Budget 2018 India, we will be updating ourselves regarding this LTCG. Every Finace budget comes up with new things with which we mus tupdate ourselves. This is what finance planing is! I simply wanted to conclude this budget 2018 India, from Investors point of view as dissapointing. Investors who are risking money in stock market, giving Indian companies a good finacial resource with the acceptance of global & national risks and ups and downs in market, who are studying finance, share market, companies reports and much more still Government is demanding to paay 10% of LTCG tax is upsetting for young investor like me. |
| Keys to Avoid LTCG Legally |
LTCG Tax in Finance Budget 2018
Anyways, respecting honerable Finance Misiter let's go through details of this.1. Whenever you are going to sell your shares for a period of 1 year or more, it's going to be called as LTCG (Long Term Capital Gain ) as discussed in previous article.
2. In Budget 2018 India, on the Feb 1st, 2018 it's expected to be applicable on/after April -1st 2018. This means equity sell before April 1st 2018 is All LTCG excempted. Yes, it's long term capital gain excepmted before April 1st 2018.
( Right from the next day huge downfall in Indian share market was noted as response to LTCG reintroduction.
3. This means Indexation 20% is no longer applicable for Mutual Funds- Equity Category.
4. Limit for LTCG is 1 Lack Ruppes.
5. Sadly, it will be applicable to Mutual Fund profits as well along with shares/stocks.
Summary
This means After April 1st, 2018 if you are selling equity mutual funds or actual equity stocks / shares with net value of 1lack in entire finantial year 2018-2019 (From 1st April 2018 To 31st March 2018) you will be paying 10% of your revenues as LTCG tax.How to avoid LTCG tax ?
1. Sell your equity assets before April 1st, 2018This sounds illogical as market has straight a way came down. Selling your assets at low cost is fullishness. May be earning more and paying tax and still being in benefit would sound smarter!
2. Don't Sell quity assets with revenue of more than 1 lack ruppes in finantial year 2018-19.
It's also likely that in upcoming finantial year 2019-2020 , LTCG can be called off! Every financtial budget has new things to introduce/ to change. keeping money in market without profit booking sounds risky as never knows market may remain down for months or years later! So, wise choice is stay invested in large cap companies if you can withstand. You may continue profit booking that is selling shares and receiving profit upto amount of 1 lack in finantial year 2018-2019.
Tax Slabs 2018-2019
I will be writing interesting stuff on this very much wanted topic! Thanks for huge response! This is the most wanted topic for common man in India. But this article will not be complete without mentioning about tax slabs in 2018-2019. They are same as last year. (April1st 2017 to March 31st 2018 ) Stay connected for more upcoming post on this topic ;)Reference for this post
Official Site Income Tax India : (download pdf by clicking here)