Government Unfazed by Stock Market Dip Amid Capital Gains Tax Hike

Finance Secretary TV Somanathan downplays concerns over stock market correction following capital gains tax hike. He calls the tax increase minor and highlights India's relatively low taxation on stocks. The government also unveils a scheme to boost youth employment through internships in top companies.

Finance Secretary TV Somanathan has downplayed concerns that the recent increase in capital gains tax on shares will significantly impact the stock market. In an exclusive interview with ANI, Somanathan emphasized that the drop in market prices is a temporary phenomenon and not a major concern for the government.

He explained that while the Union Budget raised the long-term capital gains (LTCG) tax from 10 percent to 12.5 percent, this should not be seen as a significant issue. He pointed out that India's stock market taxation remains among the lowest globally and that the adjustments aim to simplify the tax system for all asset classes.

Additionally, Finance Minister Nirmala Sitharaman announced an initiative to create internship opportunities for 10 million youths in the top 500 companies in India. The program, part of the Union Budget 2024-25, will see companies cover training costs and 10 percent of intern stipends from CSR funds, with the government covering the rest.

(With inputs from agencies.)