The next six months may bring positive bias to the equity market due to increased economic activity and potential rate cuts, according to industry experts.
The amendment to the Finance Bill, 2023, proposes to bring taxation of debt mutual funds on par with other debt instruments, like fixed deposits, by abolishing long-term capital gains. This also closes the indexation facility that came with it.
You have an effective tax rate of 30%. and this is one of the big ways that private equity works when we talk about tax arbitrage is literally, you re moving things from one column of the accounting ledger to the other from a place where they get taxed heavily to a tax subsidy. it is constructed. it is an artifact of a tax stream. it would be like you went to indiana, bought a truck full of cigarettes, drove them to new york and sold them. you can make a neat profit because cigarettes are taxed in new york much more. it s not like you re doing some amazing thing in the adam smith sense of the market of innovation. people selling cigarettes and buying cigarettes in low tech