Open Challenge to Hasmukhbhai

2 replies on “Open Challenge to Hasmukhbhai”

What is this guy even saying? The Finance Secretary was not talking about beating the market, simply about making money from it. In India with historical index equity returns around 10-15% per year, this is pretty easy and the secretary does have a point. Active managers are not being penalised any more than passive investment managers. While I disagree with the LTCG tax on principle, it will almost certainly increase the tax base. Why does the MD of a private equity fund need to get involved in this in the first place?

The logic that anyone who earns more than 1 lac capital appreciation is rich and should be taxed is flawed. Suppose a superrich person invests in equity to earn less than one lac and gets tax ememption and a very small businessman or class 4 employee invests and earns more than 1 lacs capital appreciation then the comparatively poor is taxed and the rick is exempt. Tax should be on total income from all sources of the person and not on limits on certain transactions. It is misleading.

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