Letter to the Editor: Regressive tax

The move to tax long-term capital gains will disrupt the transition in the saving habits of Indians. Demonetisation and the progressive lowering of interest rates of traditional instruments such as fixed deposits have led many to invest in shares and bonds.

2 min readFeb 7, 2018 12:23 AM IST First published on: Feb 7, 2018 at 12:23 AM IST

The move to tax long-term capital gains will disrupt the transition in the saving habits of Indians. (Express illustration)

This refers to the editorial, ‘Sensex isn’t evil’ (IE, February 6). The move to tax long-term capital gains will disrupt the transition in the saving habits of Indians. Demonetisation and the progressive lowering of interest rates of traditional instruments such as fixed deposits have led many to invest in shares and bonds. The reintroduction of taxes on profits in such investments above Rs 1 lakh will deter what is already a risky investment.

Anupama Chandra, Lucknow