Make Long Term Capital Gains Tax Free Only After Three Years of Holding
Equity capital gains are free if you sell shares after a year. You don’t pay long term capital gains taxes for shares sold on a stock exchange. But if you look at other “assets”, equity is getting a...
View ArticleFive Things We’ll See In Budget 2015
I write at Outlook – Five Things We’ll See In Budget 2015: There are a lot of expectations from the NDA’s first full budget. Here’s what might happen: 1. Lower Oil Subsidies We have three major...
View ArticleTax Arbitrage Using Arb-Funds To Be Removed?
Value research says it’s likely that in the budget, Arbitrage funds will be considered debt funds for the sake of tax. After the last budget (July 2014) you had to hold “debt” mutual funds for three...
View ArticleBonus Stripping and the Impact of Arb Fund Unwinding on the Market
You gotta hand it to Manoj Nagpal (@nagpalmanoj). (He’s a great guy with excellent insights on mutual funds!) In a conversation on the impact of converting arbitrage funds to debt funds, potentially in...
View ArticleBudget 2015: Watch How Subsidies Have Eaten Up Our Government Spending
We welcome the Budget 2015 series with a post on Subsidies. The government pays for many things for us: Food: The government buys food and lets it rot in large warehouses (which it also pays to build)...
View ArticleRailway Budget: Big Plans in Store, And Can You Open Your Pockets Please?
The Rail Budget is here. Let’s cut through the bull and give you what’s important. Fares Haven’t Changed Yes, it’s time to rejoice. You’re still going to be stuffed like sardines into massive metal...
View ArticleEco Survey: If You Incentivize Making Abroad, How Will You Make In India?
So let’s say you were looking to manufacture something. Maybe it’s a faster cellphone battery charger. You want to set up this plant in India, to make chargers at Rs. 100. But if you did, there’s some...
View ArticleEconomic Survey 2015: Where Do We Expect to Find our Investments
What a day it has been. What a week in fact. Capital Mind has been getting plenty of attention for our posts on the Budget, and now that we are tantalizingly close to D-Day (or B-day as we call it),...
View ArticleBudget 2015: Live Updates
We will be constantly updating this post with tweets from our Twitter handle(@capitalmind_in). 1:08 pm: 9. There’s a black money bill, there’s a DTC, a GST – all reform is supposed to be there....
View ArticleBudget 2015: More Taxes, No Wealth Tax, More Other Taxes, Black Money Attacks
Budget 2015 wasn’t quite a blockbuster budget. It’s more of a pocket buster, as the biggest thing inside it is: Taxes are up. No Tax Rates Changed, But High Income Surcharges are Up The Government...
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Is There a Rs. 30,000 cr. Debt Swap Planned For March?
Something seems off in the Budget Calculations. Every year we spend more than we earn. We borrow the difference, typically as market debt called Government Securities. The difference between spending...
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We Just Missed Revenue Estimates by 63,000 Crores. And The Biggest Culprit:...
India is brilliant, they’re going to tell you in the news tomorrow. But what really has happened in the last year is absolute carnage, in terms of both revenues and expenses of the Central Government....
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Budget 2015: Balancing the Budget By Massively Overestimating Tax Collections
Yes, we missed Budget Estimates by a huge margin. But how are our estimates, in terms of growth over the previous year, compared to earlier times? Let’s take a look. What this tells you: Expectations...
View ArticleYou Thought Service Tax Was Hiked to 14%? It Might Be 16%.
Service Tax in Budget 2015 was moved to 14% from the 12.36% we were paying earlier. But there’s a sneaky thing in the budget that allows them to push it up to 16% whenever they want. From the...
View ArticleMacronomics: The Budget, It’s Impact on Bonds and Rates and Equity
We discuss the impact of Budget 2015 on the financial markets. This post is for Capital Mind Premium subscribers only.
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RBI Agrees To Meet 4% Inflation Target, + or – 2%, Starting Jan 2016
Inflation targets are now at 4% starting Jan 2016. This is now a stated goal, with the Government and the RBI agreeing on it. Plus, the RBI needs to come back to the government with reasons if it goes...
View ArticleYou Will Not Believe The Real Cost of the Subsidized Insurance and Pension...
There were three new “social” schemes in the budget. These sounded like big government expenditure and the devil is obviously in the details. We have some details from the FinMin. Accidental Death...
View ArticleA High Service Tax Means Do Not Make In India, Buy From Abroad
Service Tax was hiked to 14% in this budget. The FinMin folks seem to think this is just a gradual move towards the GST rates of 20% or so, since manufacturing is charged over 24% right now (12% VAT,...
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Budgetonomics 2015: The EBook Free For Capital Mind Premium
Every year we produce a book on the Budget called Budgetonomics. It’s about the Budget. The What, the Why, the How and the Who Does It Affect. The pieces in the budget are culled from all of what we...
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RBI Swaps Government Debt In Its Own Book Instead of Finding a Market Trade
In the Budget, we asked the question: Is a 30,000 cr. debt switch planned for March? Of course it was, it turns out. The government was looking to switch debt worth 30,000 cr. from an immediate...
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