What Budget 2020 may hold for citizens and the stock markets: Expert's take

Union Budget 2020 is just around the corner. What makes it more crucial to the economy than most of its predecessors is the fact that it comes at a challenging time.  Business Standard spoke to Chartered Accountant Ashok Shah, who shares his views on the macro and microeconomic implications it could have. While there is an urgent need for the finance minister to put money into the hands of an individual taxpayer to revive the economy, Shah does not see her offering any concessions under various sub-sections of Section 80 of the Income Tax Act.

He does, however, expect the FM to incentivise the stock market by scrapping Dividend Distribution Tax. The buzz on the street is that the holding period for listed securities to qualify as long-term assets will be raised from one year to two years, upon attainment of which any gains made on their sale will be exempt from tax. Shah believes such a move may not be amicable for the capital market. He also wants the FM to take measures to reduce gold imports.