The Union Budget 2024-25 proposal to hike the capital gains tax might cool down the activity in the stock markets if that is the idea of the government, according to Nithin Kamath, chief executive officer of Zerodha Broking Ltd.
Finance Minister Nirmala Sitharaman proposed to hike the long-term capital gains tax from 10% to 12.5% and the short-term capital gains tax from 15% to 20%.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
These changes will be applicable from Wednesday, Kamath posted on X. "If the idea was to cool down the activity in the markets, this might just do the trick."
Budget summary for us
STT on options goes up from 0.062% to 0.1%. STT on futures goes up from 0.0125% to 0.02% from October 1st.
We collected about Rs 1500 crores of STT last year, @zerodhaonline. If the volumes don't drop, this will increase to about Rs 2500 crores at the new…July 23, 2024AdvertisementThe proposed hike in the securities transaction tax on futures and options will lead to an incremental revenue if the volumes do not drop, according to the CEO.
The STT on options contracts will increase from 0.062% to 0.1% and the same for futures contracts will rise from 0.0125% to 0.02% from Oct. 1, he said. "We collected about Rs 1,500 crore of STT last year. If the volumes don't drop, this will increase to about Rs 2,500 crore at the new rates."
AdvertisementWhile the retail segment is the most-notable bearer of losses in the markets' derivatives segment, the share in participation highlights a different category of traders as the drivers of derivatives volume.
Watch: Key Takeaways From Union Budget 2024
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.