Budget 2020: Cut tax on long term capital gains

Budget 2020: Cut tax on long term capital gains

By  Rajat Jain

The Government should look at reviving consumption to help accelerate growth. The benefits available under Section 80 C can be potentially revised upwards as the Rs. 200,000 limit has remained static for a long time now. This would bring it in line with the increase in income over the years. Changes to the Long Term Capital Gains tax could help improve sentiment in the equity markets.

Spending on Infrastructure is the key to reviving growth. This should be driven by both – public and private investments. The markets understand that revenue growth was been below expectations and would not take it too amiss if the Government  breaches the fiscal deficit targets so long as the  increased expenditure is productive and goes to building  infrastructure.

(Author is CIO, Principal Mutual Fund)