How to Avoid Capital Gains Tax? Netizen’s Humorous Advice Sparks Debate
How to Avoid Capital Gains Tax? Netizen’s Humorous Advice Sparks Debate
In the wake of Budget 2024, which saw Finance Minister Nirmala Sitharaman increase Long-Term Capital Gains (LTCG) Tax from 10% to 12.50% and Short-Term Capital Gains (STCG) Tax from 15% to 20%, a humorous post on Reddit has caught attention for its unconventional advice on avoiding capital gains taxes.
Following the budget announcement, which also included a hike in the Securities Transaction Tax (STT) on equity and index trades, the Indian stock market experienced significant selling pressure. The tax increases have been widely criticized as a major blow to investors on Dalal Street.
Amid the serious discussions and criticisms surrounding the tax changes, a Reddit user shared a tongue-in-cheek suggestion for avoiding capital gains taxes. The post humorously recommended buying stocks at a higher price and selling them at a lower price, thus incurring a loss instead of a gain. This strategy, while technically avoiding capital gains taxes, also results in a financial loss, highlighting the ironic nature of the advice.
Responses to the Reddit post varied from jest to outright mockery. One user quipped, “One way to avoid income tax is to not earn,”
while another added, “Riyal ID se aao Nimmi Thai (Ms. Nirmala, please post with your read ID).” Other comments included “NEVER SELL” and even extreme suggestions like “Just bomb the tax department,” illustrating the frustration and creativity of the online community.
Aam Aadmi Party (AAP) Rajya Sabha MP Raghav Chadha also weighed in on the tax hikes, criticizing the government’s approach. “In the last 10 years, the government has taxed the common people heavily. And what do we get in return? We pay taxes like England but receive services like Somalia,” Chadha remarked.
