Think This Is A Very Futuristic, Well Thought-Out Budget: Vallabh Bhanshali On Budget Key Points 

Bhakt brigade unleashed to defend the worst budget

Wah! What a talk! What a vision!! Feel really fortunate to find such visionaries in our society.👌

Anti market Budget 😢

Different thought❤

Good thing they're focusing on real development instead of khata khata economics.

My rational thoughts on recent tax reforms keeping aside all emotions and biases of “skin in the game” (if exists). ====================================================================================== Once this indexation benefit was brought in by the Congress government, many people converted this unfair advantage given by the corrupt Congress government into a full-time business and multiplied their wealth while honest old-fashioned shopkeepers or office-goers remained stupidly poor. Somehow only land prices were being protected by the government against inflation The pressure built up for everyone to be either part of this mad race or left behind. It appears the political system selectively brought this indexation benefit for one or two asset classes as they themselves were hand-in gloves. Everyone wanted to emulate Robert Vadra’. Something was terribly wrong in the system. I found that in my hometown people of all age groups were quickly turning into a land broker (or Dalal). Almost everyone was talking about how they benefitted from real estate as if other people who are working hard to do a real job are stupid. It was like a mad rush where no one was interested in their real jobs. People saw easy money and easy quick rich schemes in land investments. People who did real jobs were left behind. I always wondered if this indexation benefits only land investment. Why not for a clothes merchant or a grain merchant on his stock of clothes or grain? Otherwise, a shopkeeper who has stocked steel pipes can also say that it's my investment to store the steel pipes and any profit made after selling the steel pipes should be protected against inflation through the indexation. Many shop keepers in fact suffer loses as their profits do not cover inflation and sometimes there is a sharp drop in the prices and they have to sell at a loss. I believe the government wants to keep the land prices in strict check in the future by discouraging the “land hoarders” and “land mafia.” It’s not a government job to protect a favoured asset from inflation at the cost of other businesses or tax-payers unless it is of importance to national security or any other national importance. Otherwise, every tom, dick, and harry would start doing the same. The message is clear. The government wants to make it an unattractive asset. So the land can be best made available for farming, setting up new industries to create jobs and a manufacturing hub. Singapore etc. there are similar laws. Singapore's president once said that real estate is to live. It’s NOT for investment. If you want to make it an investment then pay the capital gain tax. It’s not the government's duty to protect your investment choice from inflation. The same is true for gold, silver, onion, wheat, etc. If I buy wheat or gold for investment and want to sell it later then my loss due to inflation is NEVER covered by indexation. So indexation benefit just on the land was unfair. Otherwise, an inflation hedge must be there for each single asset. I may decide to buy 1 million chairs as an investment and claim indexation on the capital gain or I may wish to buy 1 kg silver. Every asset is volatile in nature. So when I wish to make a capital gain from my investment then risk should be mine. Why should other taxpayers bear the burden of protecting my land investment against the inflation risk? And why only for the land alone. Rationally, speaking, I feel that a 12.5 % tax is completely justified on the capital gain. Indexation ONLY on land investment was a stupid move and it was a burden for taxpayers. Already hyper-smart people manipulate the agreement prices by underreporting it in the agreement. That’s also at the cost of other tax-payers. Now, I hope real estate will be used only for its intended uses (1)live, (2)farming (3)industry, etc. NOT for investment purposes. it will be now easier to make the land available to set up farms to grow crops or set up manufacturing units. Otherwise, excessive prices of land were making it painful to grow the country. I think this budget favors rationality and ends the craziness that was building everywhere. ========================== My views on taxes on shares: The point is that all investments are essentially businesses. The term “investment” is cleverly designed to avoid calling it a business. An investment is essentially an asset which is acquired to sell in the future at a profit. Same is true for the steel pipe seller or a cloth seller who is investing his earnings after paying taxes to buy the clothes and store it and sell it in future at a profit and then he pays taxes on the profit earned and re-invest it to buy more goods and the cycle continues. So we do the same in stocks as well. So there is NO difference between a shopkeeper and me. A shopkeeper also takes risk of his goods not selling or rotting or their prices declining. So stocks must be taxed. Though, there shouldn’t be any tax on dividends. As a shareholders we have already paid corporate taxes (by the industry we own). In fact, there must be a tax parity between me as a share holder and the holder of a steel pipe business.

Worst budget for middle class. Only rich are getting benefits under this Govt.