Increase STT & abolish short terms capital gains tax.

Dear sir,

 

I wish that rate of STT is to be increased and short term capital gains tax fully abolished due to the following reasons, so that share transaction gains are not at all taxed :-

 

1) First of all STT can no way be avoided and it is a sure income to the government.

 

2) Not all the investors pay short term gains tax and incidence of avoidance is more.

 

3) Share income is not the same every year for any individual .  Some time gain in a year and loss in another year.  So on gain in a year tax return will be submitted and when loss in another year tax return will not be submitted.  It is more so in the case of indiviuduals who do the share business in the name of their wife who is a home maker.

 

4) Intra day transactions would reduce, there by the volatility associated with it also will reduce.

 

5) Total transactions would tend to be more due to the advent of NPS.

 

6) I know many individuals who are very much averse to share market due to the tax issues and pan card issues and this will be avoided if there is no incidence of capital gains tax whether it is short term or long term.

 

7) More number of people could be brought in to the stock market in the long run if there is no hassels of tax calculations.

 

My profile:-

Name: Nagasubramanian.R

Qualification: M.Com.

Occupation: Central Government Employee.

Age: 48