GS3 · 10 marks · 150 words

Comment on the important changes with respect to the Long-Term Capital Gains (LTCG) and Securities Transaction Tax (STT) in the Union Budget 2024-25. Evaluate the impact of such changes on India's savings and investment regime.

Answered by 3 toppers · CSE 2023–2025

Fiscal Policy and BudgetingTaxationBanking and Finance

Syllabus: Government Budgeting.

How toppers approached it

From 2 of the 3 answers · about 190 words · 50% drew a diagram.

Opening

  • No separate opening2 of 2

Body

  • Points2 of 2

Close

  • No separate close1 of 2
  • A way forward1 of 2

The toppers’ answers

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 35 wordsTheir whole copy

Opening

Budget 24-25 demarcated imp. tax reforms with respect to LTCG, STCG and STT

Body

Diagram
- LTCG Changes - uniformity @ 12.5% p.a. - For Gold, it was reduced to 12.5% - For financial assets, ↑sed from 10% to 12.5% + Indexing removed - STT changes
Diagram
- Rationale behind - Improving tax to GDP ratio (stuck in 11.6%) - Progressivity in tax

Impact on Savings & Invst.

(1) Financial Investors are now slightly worse-off : may disincentivize stock trade. (2) → [Savings] may rise

Close

None written.

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