The recent tax resets indicate that the period of benefiting from tax arbitrage will soon end. Investors must focus on building wealth through efficient investing and focusing on risk-return
Changes made to taxation of gains from various investments across asset classes have pushed stakeholders to seek a review. (Representative image)
The effectiveness of frequent resets is debatable. Nevertheless, tax resets in Union Budgets are commonplace. The latest budget announcement, the Union Budget for FY2024, was no different. True, the expansion of rebate in direct income tax was widely applauded. But the changes made to taxation of gains from various investments across asset classes have pushed stakeholders to seek a review.
Most of the changes impact high networth investors (HNI) as these investments require larger capital outlay. Many of these proposed…