EY India's Tax Partner Analyses Budget 2024's Impact On Listed And Unlisted Financial Assets | NDTV Profit - video Dailymotion

Watch EY India's Tax Partner Analyses Budget 2024's Impact On Listed And Unlisted Financial Assets | NDTV Profit - NDTV Profit on Dailymotion

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00:00The buyback tax, does it have any implications for companies or sectors which are doing large buybacks?

00:05I would feel that so far as companies are concerned, if dividend income was the choice between buyback,

00:11buyback still remains an attractive proposition. That's what I would feel subject to reading the fine print

00:17because the buyback tax is still a capital gains tax lesser than the normal dividend tax rate.

00:21I think overall, I would feel from an economy standpoint, from a stability, continuity, certainty standpoint,

00:28this is a very good budget. Yes, from a market standpoint, the capital gains tax changes might be a little bit of a dampener

00:34but they address the weaker sectors of the economy like agricultural growth was very weak.

00:39I think there is a lot on the agri sector. Job creation was very important from production linked incentives.

00:45We are now talking of employment linked incentives. So I think that should help as well.

00:50So from an economy standpoint, I think the stability, continuity, addressing the weak spots and continuing the growth on the rest

00:57I think is overall good for the economy and the fiscal discipline is a big macro point.

01:04I am asking him that this rationalization on term for capital gain, she said that all financial instruments will go to one year.

01:11So does it mean that even debt actually goes to one year or it still remains?

01:16Debt is actually part of, anyway it's an income. So capital gain doesn't apply.

01:21So the way I think she has put it and we look at the fine print but listed financial assets is one year.

01:26I think other she said is two years. She said unlisted financial assets will be held for two years.

01:33Correct. So listed financial assets whether it is debentures, bonds, I think that's how it is, is one year for long term

01:41and others is two years. But in bonds actually long term doesn't apply anymore. Correct.

01:45So therefore it's only equities. She said that way that listed financial assets.

01:49So I assume it will be mutual funds which are in listed equity as well as listed shares.

01:55I would presume would be one year and all other financial assets and other assets is two years.

02:00So she is trying to simplify the capital gains tax rate.