Decoding the Budget Impact: F&O Taxes & Buyback Bonanza

Decoding the Budget Impact: F&O Taxes & Buyback Bonanza

The recent budget has shaken things up for Indian investors and companies. Let's break down two key changes:

  • STT on F&O Trading Goes Up: Get ready for higher costs! Options trading will see a jump from 21% to 31%, while futures trading goes from 39% to a hefty 50%. This kicks in from October 1st.
  • Buybacks Get Taxed: The party's over for tax-free buybacks. The New Regime taxes buybacks just like dividends, meaning companies have to consider tax implications.

What does this mean?

  • Expect a shift in how companies distribute their profits.
  • IT companies with major promoter holdings could be particularly impacted by the buyback tax change.
  • Dividend payouts may decrease as companies adjust to the new tax rules.
For more details, watch the full video.

​

    • Related Articles

    • How Diverse Markets Embrace Budget Changes!

      As the Union Budget 2024 gets closer, it's like markets are getting all excited, just like waiting for a big show to start. People in the markets are eagerly waiting for the budget, and you can see more action happening as the budget days come near. ...

    • Union Budget Uncovered: A Closer Look

      The Union Budget of India is a crucial financial document that outlines the government’s revenue and expenditure for the upcoming fiscal year. It plays a significant role in shaping the country’s economic policies. What is Union Budget? The Union ...

    • Budget 2024 Decoded: Relief Rally & Sectoral Impact

      Deepak Jasani, Head of Retail Research at HDFC Securities, breaks down the Union Budget 2024 for CNBC Awaaz viewers. Here are the key takeaways: Market Reaction: Initial correction gave way to a rally as negative expectations were avoided. Don't ...

    • Upcoming Union Budget 2024: Insights and Projections

      Here is an insightful discussion on the upcoming budget with Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities. Key Themes and Sectors to Watch: The budget is expected to focus on boosting growth through economic activities, with a ...

    • Budget 2024: Winners, Losers, and Key Takeaways!

      Explore Budget 2024 with Mint's in partnership with HDFC Securities special edition, covering sectoral impacts, fiscal policies, and economic shifts. Discover who benefits, who doesn't, and what's become cheaper or pricier under Modi's new five-year ...