Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, said that necessary steps need to be taken to curb speculative trading and develop a trend of investing for the long term. Nilesh Shah said this on Thursday during an interactive session organized by the Calcutta Chamber of Commerce. Shah is a part-time member of the Economic Advisory Council to the Prime Minister (EAC-PM). In the program, he emphasized how long-term capital investment can create wealth for retail investors and Indian companies.
Nilesh Shah told news agency PTI-Bhasha that we should discourage (speculative) trading so that investment is encouraged. People lose money. If the government is considering higher taxation for futures and options or speculative trading, it would be the right step. Shah said this in response to a question about speculations in the media that the Finance Ministry is planning to impose higher taxes on futures and options (F&O) transactions in the upcoming Union Budget.
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According to media speculation, the proposed changes could include reclassifying these transactions from non-speculative business income to speculative income and possibly levying TDS on them. On the other hand, Shah is optimistic about the country’s growth momentum, its immense potential and opportunities despite many challenges.
In his pre-budget memorandum to the Central Board of Direct Taxes, Vinod Kumar Goyal, president, Association of National Exchanges Members of India (ANMI), suggested that income/loss arising from transactions (non-delivery based) (which are settled on the same day) should be treated as business incomeā¦ not speculative income.