Published: 24th July 2024

By: Value Research

Union Budget 2024: How it impacts equity investors

Impact on equity investors

The much-awaited Union Budget 2024-25 thrilled some and let others down, like equity investors who now have to adjust to a slew of tax changes. Swipe and check the revisions:

Capital gains tax hiked

Equity investors will now have to shell out more in tax. Short-term capital gains tax (STCG) has been hiked to 20% from 15%. Long-term capital gains tax (LTCG) has been raised to 12.5% from 10%.

Exemption limit for LTCG hiked

The only saving grace has been the increase in annual tax exemption limit for LTCG to Rs 1.25 lakh from Rs 1 lakh.

F&O frenzy reigned in

To curb the frenzy in derivatives, the securities transaction tax or STT on futures has been raised to 0.02% from 0.0125%, and on options, it has been raised to 0.1% from 0.0625%.

Buybacks taxed

Income from share buybacks will now be taxed in the hands of the receiver, or the shareholder. Previously, the company making the buyback paid the taxes.

Custom duty changes

Import duty has been overhauled for many commodities. It has been slashed on gold and silver to 6% from 15%, and even on mobiles and critical minerals. Check the list from the link below.