Lock-in period of Six months would not be advisable as people invest in shares to make money. This is a high risk business where loss may be total. For example GTB shares. Normally retail share holders would claim STCG/LTCG. The lossess may be set off against respective gains. However this may not materialise. Why penalise investors by putting a lock-in period. He may very well achieve his target price the very next day or prices may plunge like black monday/friday .In such case he should have the option to book profit or cut losses.
Hence I sugest STT with Delivery based transaction (T+1, T+2) should qualify for STCG/LTCG and choice should be left to the Investors alone.
It is a fact that budget of IT Deptt. is much more than the IT collections. But they do concentrate on other things like corporate taxes , dividend taxes, wealth taxes etc. Income taxes from individuals are shared by States as per the recommendations of Finance Commissions.This constitutes an important source of revenue to the states.
But role of IT deptt. is not only in regulating White economy but also in generating Black economy which eats away at the vitals of the country. Customs and Central Excise also play their seminal role in this. One can only hope that Computerisation might bring in some sort of transperancy in their functioning.
Mr Chidambaram and his team of officials have talked about trust. Simplification of Tax laws are part of this. He means business and I hope that tax laws will not resemble jungle laws after few years and we can be proud of paying taxes rather than hiding income.
Hence I sugest STT with Delivery based transaction (T+1, T+2) should qualify for STCG/LTCG and choice should be left to the Investors alone.
It is a fact that budget of IT Deptt. is much more than the IT collections. But they do concentrate on other things like corporate taxes , dividend taxes, wealth taxes etc. Income taxes from individuals are shared by States as per the recommendations of Finance Commissions.This constitutes an important source of revenue to the states.
But role of IT deptt. is not only in regulating White economy but also in generating Black economy which eats away at the vitals of the country. Customs and Central Excise also play their seminal role in this. One can only hope that Computerisation might bring in some sort of transperancy in their functioning.
Mr Chidambaram and his team of officials have talked about trust. Simplification of Tax laws are part of this. He means business and I hope that tax laws will not resemble jungle laws after few years and we can be proud of paying taxes rather than hiding income.