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"The overarching theme of this Budget is fiscal consolidation and focus on employment generation. The reduction in fiscal deficit target for FY 25 from 5.1% in the interim Budget to 4.9% now reflects the government’s focus on growth with financial stability. This, along with Rs 11.11 lakh crores (3.4% GDP) of capex in FY25 augurs well for the growth of the economy in the long run.

From the market perspective the Budget proposals with the intent of raising tax revenue from capital gains are slightly negative. The increase in STCGs tax from 15% to 20% is sharp. The increase in LTCGs tax from 10% to 12.5% is only marginal particularly when seen from the perspective of raising the LTCGs tax exemption limit from Rs 1 lakhs  to Rs 1.25 lakhs. The taxation of share buy back income at the hands of the recipients also is a negative. The higher taxes on F&O was expected and this is being done to reduce the excessive speculative trades in the market.

 
A major positive in the Budget is the proposal to abolish angel tax. This will be a big boost to the startup ecosystem."

 

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