Photo: ReutersSending investors the bill for a shortfall from India’s new goods and services (GST) tax is a bad idea. A long-term capital gains levy on equity can be problematic in a country perennially short of domestic savings. In a frothy stock market, it’s like crying “fire” in a crowded room. Speculation is unusually intense ahead of the 1 February federal budget, with Deloitte Touche Tohmatsu India LLP calling capital gains tweaks “low-hanging fruit”. However, going after stock investors to plug the deficit would backfire.

Source: Mint January 30, 2018 03:00 UTC