The noise over LTCG..

*Hope the dust is settling down after the shocking news on introduction of Long Term Capital Gains Tax on Equity oriented investments in India*

*Now think cooly and look around you and what’s the status in other developed and Emerging economies. Every country has varying rates of short/long term capital gains tax. This is nothing new in India. Only for the past few years this was exempted and is reintroduced to part fund Trillions of dollars of funds required to fund all round Infrastructure in the country. Now stop watching the high decibel debates on television channels and focus on your personal agenda of wealth creation. Look at the illustration with moderate projections of returns on investments in the new scenario and stay focused on your cherished objectives.*

If you invest Rs.10,00,000/- at 15% p.a. Estimated Returns for a period 10 Years; 

Your money will become Rs.40,45,558/-. 

Even after paying long term capital gains tax of Rs.3,04,555.80; which is 10% ; you will still be left with Rs. 37,41,002/-. 

*So effectively your returns are 14.103% p.a. And investing in Equity Mutual Fund continues to be the best investment option than any other asset class.*

For all the privileged ones who will be reading this on their smartphones; for a moment please think of the crores of our brothers/sisters, for whom even a square meal is a luxury. Seeing a stable electric light is a dream. Traveling by roads fit for even walking is unimaginable (forget about expressways and air conditioned cars). They dread to fall sick as there are no healthcare facilities worth the name. This is an accumulated problem of over 7 decades and one cannot just do away with this without everyone of us contributing in a small manner.