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Below the Quote on Union Budget by Sandeep Chordia, COO, Kotak Securities

“Overall budget continues the path of fiscal consolidation with revised target of 4.9% of GDP for FY25 ( from earlier target of 5.1%, aided by dividend from RBI and tax buoyancy) and 4.5% for FY26 which is hugely positive. Three proposals impacting capital market the most are , increase in capital gain tax, STT on F&O, and taxation on buyback of shares. There is increase in Short term Capital Gain Tax from 15% to 20% and long term from 10 to 12.5% for all sale transactions effective from 23^rd July 2024. Fine print also takes away indexation benefit on sale of property , gold and unlisted assets. STT on futures increases marginally from 0.0125% to 0.02% and on options from 0.0625% to 0.1% on premium. Buyback of securities will now be taxed in the hands of shareholders similar to dividend and capital loss

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