Budget 2014 Eliminate long-term capital gain for unlisted shares'
July 9, 2014
Business Today spoke to Gopal Srinivasan, Chairman, TVS Capital Funds Limited on his exepectations from the Budget.
1. Fiscal deficit reduction: Be as tough, as bold as innovative as needed. The government must be fiscally strong is the most obvious principle.
2. Simplify taxation: Best example is the need to establish fair market value for private investment in a start-up. Introduce GST.
3. Focus on funding entrepreneurship as the "sabka vikas" enabler: Make institutional capital easily available by allowing charities and pensions to invest in AIFs. Introduce pass-through taxation for administrative ease for all AIFs. Eliminate long-term capital gain for unlisted shares. Funds will flow to small and mid-cap start-ups and unlisted companies. And jobs will rapidly rise in the corporate sector.