After this report, Indian stock markets crashed badly and during trading on Friday, May 3, the 30-share BSE benchmark Sensex fell by more than 1000 points.
Finance Minister Nirmala Sitharaman has completely rejected the news related to changes in income tax rules. He termed it as a rumor and said that it is completely based on speculation. Actually, it was being claimed in the media report that the Income Tax Department is planning to change some rules after the Lok Sabha elections. According to the report, these changes will be implemented as soon as the new central government is formed. After this report, Indian stock markets crashed badly and during trading on Friday, May 3, the 30-share BSE benchmark Sensex fell by more than 1000 points.
What did the Finance Minister say?
The Finance Minister shared the report of a media channel claiming change in income tax rules on social media platform X. Along with this he wrote- I am surprised where these things are coming from. It was not even re-examined by the Finance Ministry. This is completely a rumour. After this tweet by Nirmala Sitharaman, the media channel has deleted this post from its X account.
What was in the report
The report claimed that the Income Tax Department may stop the reduction in the tax base after the new government takes charge. Along with this, the laws related to income tax penalties can be improved. Along with this, the report also said that the new government is planning to implement uniform tax on all assets. Currently there are different tax provisions on assets.
Which investors felt scared?
The scheme of uniform tax could have a negative impact on equity investors as they are taxed favorably compared to debt investors. Investors were frightened by this report and there was an uproar in the stock market. The Sensex fell by more than 1,100 points on Friday. At the end of trading, it closed with a fall of 733 points. Investors lost Rs 2.25 lakh crore due to the fall in the stock market amid heavy profit booking.
