Middle Class Cheated In Budget?

Summary

The video discusses the latest budget and its impact on various sectors, particularly middle-class investors. It highlights changes in long-term capital gains (LTCG) taxes, such as increased holding periods and altered tax rates, which could burden investors more than before. While some sectors like gold may see reduced customs duties, other areas like real estate face increased taxation due to the removal of indexation benefits. The video critiques the government's decisions, suggesting they may not meet public expectations and could negatively impact the market and investor behavior in the future.

Takeaways

• 📉 The budget seems to have disappointed many, especially the middle class, as they expected more benefits but faced higher tax burdens.
• 🌾 Sectors like agriculture and manufacturing might benefit from the budget, but the middle class is expected to bear a significant tax burden.
• 💼 The long-term capital gains tax (LTCG) has been increased from 10% to 12.5%, and the holding period for long-term investments has been extended from one year to two years.
• 📈 The indexation benefit, which adjusted asset cost for inflation to reduce taxable gains, has been removed, potentially increasing tax liabilities for real estate investors.
• 🏦 The Securities Transaction Tax (STT) has been doubled, which might affect the number of long-term investors in the share market.
• 📉 The budget's changes have led to a significant drop in the stock market, with many companies across different sectors performing poorly.
• 💎 The customs duty on gold has been reduced from 15% to 6%, which might make gold more affordable but doesn't seem to offer much benefit to consumers.
• 🚫 The Angel Tax, which was levied on startups selling shares at a price higher than their valuation, has been completely abolished, benefiting startups.
• 📉 Corporate tax for foreign companies has been reduced from 40% to 35%, still higher than domestic companies, which might not be as attractive as expected.
• ⏳ The budget's impact on real estate is expected to be negative due to the removal of indexation benefits and the potential increase in capital gains tax, which might lead to problems in the real estate market in the coming times.

Q & A

What was the general sentiment of the budget discussed in the script?

The script suggests a sense of disappointment and disparity, particularly among the middle class, due to the budget's perceived lack of benefits and the increased tax burden.

How does the script describe the impact of the budget on sectors like agriculture and manufacturing?

The script indicates that sectors such as agriculture and manufacturing might benefit from the budget, while the middle class is expected to face a significant tax burden.

What changes were made to the Long Term Capital Gains Tax (LTCG) in the budget according to the script?

The script explains that the LTCG tax rate has been increased to 12.5% from the previous rates, which were 10% for equity and 20% for other financial assets like real estate and gold. Additionally, the holding period for long-term investments has been extended from one year to two years.

How does the script analyze the effect of indexation benefits on real estate investments post the budget?

The script suggests that the removal of indexation benefits will likely result in a higher tax liability for real estate investors, as the taxable gains will be calculated based on the actual purchase price rather than the indexed cost.

null

null

What was the previous and new rate for the Securities Transaction Tax (STT) as discussed in the script?

The script mentions that the STT, which was previously at 12.5%, was expected to be reduced but was actually doubled, remaining at 12.5% for long-term and increasing to 20% for short-term capital gains tax.

How does the script comment on the reduction of the corporate tax rate for foreign companies?

The script notes that the corporate tax rate for foreign companies has been reduced from 40% to 35%, which is still considered high compared to the 25% rate for domestic companies.

What was the script's commentary on the removal of Angel Tax?

The script positively remarks on the complete removal of Angel Tax, which was a tax levied on startups when they sold shares at a price higher than their valuation, and is seen as a benefit for startups.

What are the potential implications of the budget on the real estate market according to the script?

The script anticipates potential problems for the real estate market due to the increased tax burden on investors and the removal of indexation benefits, which could lead to a decrease in the number of investors.

How does the script discuss the impact of the budget on the middle class investors?

The script suggests that middle-class investors, who were expecting gains, will now face a heavier tax burden due to increased capital gains tax rates and the removal of certain benefits.

What is the script's view on the government's approach to managing the expectations of the people from the budget?

The script advises against setting high expectations from the budget, echoing the sentiment that it's better to be prepared for disappointment, as the budget may not meet everyone's expectations.