Budget 2024: Markets react negatively; tax increased on capital gains
Before the Union Budget, the domestic stock market started trading on the green mark. Finance Minister Nirmala Sitharaman presented the budget in the Lok Sabha at 11 am. Before this, the domestic benchmark indices are seen trading positively. At 9:36 am, the Sensex was seen trading at 80,555.17 with a gain of 28.52 (0.03%) points. On the other hand, the Nifty was seen trading at 24,526.65 with a strength of 17.41 (0.07%) points. In early trade, the Sensex saw a gain of 200 points while the Nifty crossed 22550, but selling was seen in the market from the upper levels.
After the budget speech of the Finance Minister, the Sensex fell 1000 points in trading, while the Nifty remained below 24,150 points. However, after a slight recovery was seen in both the indices. At the time of writing, Sensex remained below 80000 points and Nifty remained below 24,300 points.
Market slipped in red as soon as speech started
Market slipped in red as soon as Finance Minister’s budget speech started. Agriculture related stocks jumped 10 percent after the announcement of allocation of Rs 1.52 lakh crore to the agriculture sector. On the other hand, after the announcement of shrimp farming scheme by Finance Minister Nirmala Sitharaman, Apex Frozen Foods, Avanti Feeds, Waterbase shares jumped up to eight percent.
Budget 2024: Long term, short term tax rates increased
Finance Minister Nirmala Sitharaman has given a big blow to the common man in the matter of capital gains tax in the Union Budget 2024. In Budget 2024, long term capital gains tax on selected financial and non-financial assets has been increased by 2.5% to 12.5%. At the same time, short term capital gains tax has also been increased from 15% to 20%.
The Finance Minister also said that under the simplification of capital gains, listed financial instruments held for more than one year will be considered long term. After this announcement of the Finance Minister, a big decline is being seen in the stock market.
How much capital gains tax is levied now?
Capital gains tax is levied in two ways. If a stock is sold within 1 year, then short term capital gains tax is levied on the profit made on it, which is levied on the basis of your tax slab. If the stock is sold after 1 year, then long term capital gain tax is applicable. In this, profit up to Rs 1 lakh will be out of the scope of tax, while profit above this will be taxed at the rate of 10 percent.
