• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Motilal Oswal

The Budget is growth-oriented with a focus on inflation control too. The increase in short-term capital gains tax will only temporarily bring down investor sentiment. And it is not such a big issue.

For instance, if you are getting 40 per cent returns from investments for the last three years, and paying income-tax at 33 per cent, it is not really substantial. In fact, it will definitely increase the investor appetite for longer-term investments, after all you will be paying zero tax versus 15 per cent if you hold for a longer term.

However, with rising tax collections, the corporate tax rate could have been reduced or the surcharge removed.

The commodities market is in too nascent a stage for commodities transaction tax. It could kill the liquidity in the markets.

More Stories on : Budget | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Headroom well used

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line