homeeconomy NewsBudget 2020: DDT abolition, new income tax regime big positives, says market expert SP Tulsian
Budget 2020: DDT abolition, new income tax regime big positives, says market expert SP Tulsian
Insurance sector will be the worst affected as a consequence of the new tax regime announced by finance minister Nirmala Sitharaman, said SP Tulsian in an interview with CNBC-TV18.
Insurance sector will be the worst affected as a consequence of the new tax regime announced by finance minister Nirmala Sitharaman, said SP Tulsian in an interview with CNBC-TV18. Sitharaman presented the 2020 Union budget on Saturday.
“Insurance sector seems to be the worst affected. For example, if I am opting for the new tax regime — which I will because of the lower taxation benefits — probably I will opt to invest in the public provident fund (PPF) and not go for the LIC
He added: “If you look at the positives like dividend distribution tax (DDT) abolition — it is a structural shift — people have been shouting on this for the last 10-15 years, this seems to be a big change taken place which market has overlooked. So probably the expectations got belied. The effect of that we are seeing in the form of the weakness coming in.
“I see huge capital will come into the capital market post this. DDT being abolished, 20 percent higher dividend payment will be made by the companies.
"Hindustan Unilever Ltd (HUL) have the dividend pay-out of 90-95 percent of which the effective receipt by the shareholders in their hands is just 70-75 percent, so those things will increase. I am quite positive that because of the savings having got curtailed, you have no other option but to go for the investment into the stock market. This seems to be an overreaction because the expectations did not meet but DDT abolition and the personal income tax rejig seems to be a big positive."
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM