I was very tempted to write about DTC and its implications on normal salaried employees as well as on stock investors but by the time I decide a new draft of DTC was presented. Admittedly, I was little lazy but better late than never. I assume the latest version of DTC in its current form is quite stable and may not need a big change henceforth. In any case it will be applicable from April, 2012, there is still a lot of time to not to think about it.
Affect on investors:
As per one of its clause, the short term capital gain tax will be applicable only on the 50% of the profit thus in effect the tax will be 5%, 10% or 15% dependent upon individual's take home. This move will attract lower income people to come and join the spree of stocks :-)
The long term capital gain tax, as it currently is at 0%, has been not touched in the revised DTC. This is a refresher. SIP investors were literally worried on the prospects of their life time savings being taxed at the time they need the money at the most.
But such things are not in our control and I believe we should not worry at all about them. Whatever comes will be applicable for all, so in effect it will make little less difference.
By the way, does anyone smell a trader's, broker's & mutual funds' lobby?
Affect on investors:
As per one of its clause, the short term capital gain tax will be applicable only on the 50% of the profit thus in effect the tax will be 5%, 10% or 15% dependent upon individual's take home. This move will attract lower income people to come and join the spree of stocks :-)
The long term capital gain tax, as it currently is at 0%, has been not touched in the revised DTC. This is a refresher. SIP investors were literally worried on the prospects of their life time savings being taxed at the time they need the money at the most.
But such things are not in our control and I believe we should not worry at all about them. Whatever comes will be applicable for all, so in effect it will make little less difference.
By the way, does anyone smell a trader's, broker's & mutual funds' lobby?
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