p-notes, capital gains and taxes
Now that ONGC is coming out with its IPO, the SEBI suddenly decides P-notes are just fine. Now, even associates of regulated entitites can invest. Bloody hypocrites all. Shourie most of all.
Am reading Shankar Acharya’s book. Straightforward, somewhat insightful but nothing particularly profound. There’s however a fair bit of useful stuff that I didn’t know too much about earlier. In one of the chapters he says capital gains from investments in listed equities are not taxed these days. At least it wasn’t in 2003 when he wrote that. Still the case AFAIK. Jaswant Singh in the current budget/vote on account had promised to extend that tax exemption by another three years. Shankar Acharya seems to think that this tax exemption is ridiculous and that taxes should be imposed. I think so too.
Interest is taxed, dividends are taxed less, and capital gains not at all. Wah! Funny policies. Basically, every retail investor is being invited to play the markets. Whatever for beats me. Trading for the sake of trading has become the holy grail of markets. Now it’s even officially sanctioned.