AMN / NEW DELHI
Finance secretary Hasmukh Adhia said the sell-off in India’s equity markets is due to weak global sentiment and not because of the long-term capital gains tax (LTCG) announced in the budget.
Addressing the post-budget session of PHD Chamber in New Delhi today, Mr Adhia said global meltdown in stock exchange came at the very wrong time.
He said after declaring long-term capital gain tax in the budget, the market was okay and there was only minimal disruption on that day.
The Finance Secretary said what happened in next few days was mainly because of a global shake-up. He said in spite of Levy of LTCG on shares, Foreign Institutional Investor- FIIs are still net buyers n not net sellers in the stock market.
He said thus this decision hasn’t actually adversely affected the market that much as is being projected. On corporate tax, Mr Adhia said new companies plunging into manufacturing, already have the benefit of lower rate of corporate tax since the last two years.