Union Budget 2024 & the markets

The Union Budget 2024-25, the first from the new coalition government led by Narendra Modi, had equity investors on pins and needles. And its revelation has left them stunned with sweeping changes, especially on the taxation front. Meanwhile, the key sectoral outlays did not have any big surprises to offer. Some other notable policy changes had to do with custom duty changes across various commodities. We bring you a rundown of key policy announcements from the Budget. Let's start with the tax proposals: Taxation: Short-term capital gains on equity-oriented assets will be taxed at 20 per cent, up from 15 per cent previously. Long-term capital gains on equity-oriented assets will be taxed at 12.5 per cent, up from 10 per cent previously. The exemption limit for long-term capital gains will be increased to Rs 1.25 lakh a year from Rs 1 lakh. Security transaction tax or STT will be increased on derivatives: From 0.0625 per cent to 0.1 per cent on sa