Finance Minister Nirmala Sitharaman’s tax proposals in Budget 2024 sent shockwaves through the Indian stock market, triggering significant selling. The increased Securities Transaction Tax (STT) rate on equity and index trades, along with the hike in Long-Term Capital Gain (LTCG) Tax from 10% to 12.50% and Short-Term Capital Gain (STCG) Tax from 15% to 20%, were considered major blows for Dalal Street.
These tax changes have sparked widespread discussions and fueled a wave of humor on social media. One Reddit post, in particular, has gone viral for its ironic advice on avoiding capital gains taxes. The post humorously suggests purchasing stock at a higher price and selling it at a lower price, resulting in a loss rather than a gain, thereby avoiding taxes. While this method technically avoids taxes, it also means losing money, making it an ironically flawed financial strategy. The post’s author, a self-proclaimed “financial adviser,” adds, “Not many know this.”
The Reddit post has attracted a flurry of humorous responses: “One way to avoid income tax is to not earn,” commented one user, while another quipped, “Riyal ID se aao Nimmi Thai (Ms Nirmala, please post with your read ID).” One user suggested, “There is another way, NEVER SELL,” while another proposed, “Just bomb the tax department.” A final user added, “Chilla Chilla ke bata de sabko (Don’t expose the plan to everyone out there).”
Aam Aadmi Party (AAP) Rajya Sabha MP Raghav Chadha has also voiced his concerns regarding the tax hikes. He criticized the government’s tax policies, stating, “In the last 10 years, the government has sucked the blood of the common people of the country by imposing taxes. And, what does the government give us in return…? That is why today I have no hesitation in saying that we in India today pay taxes like England to get services like Somalia.” Chadha’s statement underscores the public’s growing frustration with the government’s tax policies and their perceived lack of benefits.
