Nithin Kamath, the CEO of Zerodha, posted a funny collage of four animated images on social media, along with a step-by-step instruction explaining how to avoid paying greater capital gains tax. The post which has gone viral comes in the wake of Finance Minister Nirmala Sitharaman’s announcement of the Union Budget under the Modi 3.0 administration, which included changes to capital gains tax.
Nithin Kamath’s Humorous Steps to Avoid Capital Gains Tax
The first step, according to Kamath, is to “research the best stock.” Nevertheless, the unexpected recommendation to investors in the second step is to “Ignore them, buy trash instead.” As stated in the third phase, “Make bad losses.” The phrase “No capital gain and no tax” is seen in the fourth step. In response to Finance Minister Nirmala Sitharaman’s statement in the Union Budget 2024, Kamath provides a light-hearted analysis on tax-saving strategies. Significant changes were made to the capital gains tax structure under the Modi 3.0 administration.
Union Budget 2024 and Capital Gains Tax Changes
Finance Minister Nirmala Sitharaman unveiled the Union Budget on July 23, 2024, and it contained a number of noteworthy adjustments to the capital gains tax. The key points are as follows:
- Long-term Capital Gains (LTCG) Tax: A 12.5% tax rate is implemented in place of the previous 10% rate. All assets, both financial and non-financial, kept for longer than a year are affected by this change.
- Short-term Capital Gains (STCG) Tax: For some financial securities, the 15% STCG tax rate has been increased to 20%. The goal of this modification is to make tax rates uniform for different asset classes.
- Exemption Limit: The exemption limit for LTCG tax has been increased from ₹1 lakh to ₹1.25 lakh annually for certain assets, providing some relief to taxpayers.
Viral Video of Karnataka Man on Income Tax
A video that went viral lately from a man in Karnataka named Shrinidhi Hande suggests an even more unusual way to save on income tax, which adds to the humour around tax-saving strategies. Hande suggests that salaried people can save 100% on income tax by “growing and selling grass” to their employers in his satirical viral video.
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