Abolish long term capital gains tax: Religare Brokering

By Nitin Aggarwal,

The combination of better than expected recovery in corporate earnings and adequate liquidity has meant that stock markets have been on the rise in the last few months. From a low of 25,638 on March 24 last year, the bellwether Sensex has rallied over 90% in the last 10 months. Despite volatile market conditions, it is heartening to note that a large number of Demat and SIP accounts opened last year, which points to rising participation from retail investors in equity markets.

While there are a lot of expectations that the FY22 Union Budget will take a number of measures to ensure that the post-COVID rebound in the Indian economy is robust and sustainable, there are also hopes for a market focused announcements that will cheer the sentiment on the street.

Among the key expectations, the investors will look forward to the abolition of long-term capital gains tax or redefining the long term to two years and reducing the taxation to nil, while further allow indexation benefits to equity mutual funds and some relief on dividend distribution tax in hands of investors.

(Author is a CEO, Religare Broking Ltd)