Rationale behind taxes
Recently, most of the people are talking about the (re)introduction of Long Term capital gain (LTCG) and about no benefit for salaried class in terms of additional tax exemptions in the 2018 Union Budget. Everyone has their own perspective. Whatever perspective one has, he/she has to understand the rationale behind all taxes Govt imposes. This is justified to run the economy and it is justified to manage fiscal deficit. The economy should do well, companies have to make profit for us to have gains. So tax is not an issue.
Our real consistent gains matter. Correction of the market is part and parcel of the markets. Particularly, when it is a over valued market. The correction could happen due to North Korea issue or capital gains tax (LTCG). So the reason does not matter. Just look at the opportunities the correction brings along with it. Check your portfolio.
Our economy and markets are in right direction.
Life and markets are not linear. If we don’t understand that, we will suffer without any real cause.