’No plan to impose tax on share transactions’

Mangalore Today News Network

New Delhi, Dec 26, 2016 : Union Finance Minister Arun Jaitley on Sunday tried to calm the frayed nerves by explaining that the government had no intention to impose tax on long-term capital gains from share transactions.

 

The explanation comes a day after Prime Minister Narendra Modi, in his speech at Raigad in Maharashtra, said those who profit from financial market must make a fair contribution to nation-building through taxes.

“The speech has been misinterpreted by a section of the media which has started speculating that this is an indirect reference to the fact that there could be long-term capital gains (tax) on securities transactions. This interpretation is absolutely erroneous,” Jaitley clarified here on the sidelines of Digi-Dhan mela, an initiative to promote cashless economy.

“The prime minister has made no such statement directly or indirectly and therefore I wish to absolutely clarify that there is no occasion or opportunity for anybody to reach such a conclusion because this is not what he (Modi) said, nor is the intention of the government as has been reported,” Jaitley said.

On the demonetisation drive, Jaitley said that the government’s bid to go cashless meant “less cash” and not “no cash”, as reported by the Opposition parties and a section of the media.

“Our bid to go cashless means less cash, not no cash, but our political counterparts are slow in understanding this and so is some of the media. As the prime minister said, there would be some problems initially, but when money comes into the banking system, the economy is strengthened,” he said.

Explaining why the government decided to go for demonetisation, Jaitley said if people had to buy property, they were asked as to how much money would be paid in cash and how much by cheque, and such immoral practices continued.

Courtesy:DHNS