How to navigate tax changes to protect your long-term money goals
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Tax uncertainty is a given. Indian investors need to worry more because tax changes are a regular affair in the country. While some changes have benefitted investors, some have been disruptive. Here are ways to minimise the impact on your long-term money goals.
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Uncertainty about future taxes should not stop investors from milking the current tax regime.
It is said death and taxes are the only two certainties in one’s life. But while the tax bit is certain, tax rates are not. Stock markets around the world went into panic mode recently as rumours floated that the US government planned to increase capital gains tax of Americans earning more than $1 million from 20% to 39.6%. As the rumour remained unconfirmed, the jitters subsided and the markets recovered.
Gilt fund or corporate bond fund? How to invest in debt funds post RBI money policy
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Thanks to the steps taken by RBI, yields on benchmark 10-year government papers came down by over 6 basis points.
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NEW DELHI: From fund managers to economists to bond market traders, everyone welcomed the decisions taken by the Monetary Policy Committee of the Reserve Bank of India.
In its money policy review on Wednesday, RBI also kept the general public’s interest in mind and batted for tax cuts on fuel. Key measures included a quarter-wise OMO calendar that is expected to help manage the yield curve and the massive borrowing program, with Rs 1 lakh crore scheduled for Q1 of FY 22. RBI expects inflation to rise marginally in FY22 though projects food inflation to soften.
Market gains on RBI policy, Sensex up 619 pts, Nifty 50 above 14,800
April 07, 2021
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At 1 pm, the BSE Sensex was at 49,857.02, ruling almost near day’s high of 49,820.53
Markets soared higher during the first half on Wednesday as the Reserve Bank of India’s decision to keep rates unchanged and maintain its accommodative stance to support economic growth.
At 1 pm, the BSE Sensex was at 49,857.02, ruling almost near day’s high of 49,820.53, up 619 points or 1.26 per cent. The Sensex touched a low of 49,093.90. The Nifty 50 was also near the day’s high at 14,854.55, up 171.05 points or 1.16 per cent.
The market was mainly driven by the dovish stance of the RBI. As rates remained unchanged, rate-sensitive stocks such as banking, financials, auto, infrastructure and realty are likely to benefit from the announcements, as per experts.
The announcements made in the Union Budget 2021-22 are in the right direction, for a country aspiring to get back into its long-term growth trajectory. Towards this, the Budget lays down the strategic intent for taking India into the next phase of development, by focusing on some key building blocks – healthcare/wellness, research/innovation, education, infrastructure and urban development, inclusive growth (agriculture and social-related) and governance-related reforms. Given the backdrop of the pandemic year gone by, the announcement of the Atmanirbhar Swasth Bharat Yojana is aimed at establishing a centrally coordinated healthcare infrastructure. The Budget has laid a lot of emphasis on infrastructure development, across roads/highways, railways and metro rail, ports/shipping/waterways and urban development. The government has proposed an “institutional” approach towards supporting the infrastructure development needs, through setting up of a development financial inst