‘What prudent is this movement …’: the main investor warns against the dependence of India in volatile tax sources such as stock market profits

Investor Ace Shankar Sharma raised concerns about the Indian tax approach on Sunday, warning that the growing dependency of the government of volatile sources such as stock market profits on stable income flows, such as corporate and personal taxes, could have long -term implications. “The central direction of our fiscal policy has been to reduce the participation of predictable taxes of taxes (corporate and personal taxes), and increase the dependence of volatile tax sources such as stock market profits. How prudent is this movement of the Politics, we will know between Fy26-29, “Sharma wrote in X.

Their comments come in the middle of a strong market correction, with the BSE Sensex sinking more than 850 points on Monday, falling below the 75,000 brand as foreign investors continued to leave in the midst of global commercial tensions. The NSE Nifty also fell 242 points, extending a losing run of five sessions. Foreign institutional investors (FII) have withdrawn more than RS 1 Lakh million rupees of Indian Variable Income Markets in 2025, with RS 23,710 million rupees withdrawn only this month.

Sharma, who has expressed fiscal inefficiencies, had previously criticized the 2025 budget, qualifying it as “response to band aid to middle class cry for lower taxes” as long as it did not approach the growth of the deceleration of India. “Beyond that, it does nothing to address the central problem, which is a slowdown in growth. I think the GDP number of the whole year would be closer to 6 percent or a little lower,” he said in an interview With business businesses. Today.

In the falling market drop, Sharma had indicated the continuous burden of the tax on the tax on the transaction of securities (STT) and the tax on long -term capital gains (LTCG), asking for a reversal. “The center should have eliminated at least STT. When STT was introduced, LTCG was eliminated. Now we have LTCG in 2018, we made it upload in Julio’s budget and STT was never reduced or eliminated. It should have been eliminated.” He said.

Highlighting the unique fiscal structure of India, Sharma contrasts with global markets. “I invest in world. Pigo zero taxes on capital gains anywhere. I only pay taxes on the dividend, which is tiny. Nowhere in the world the capital profits are taxed, except India,” he said.

The broader feeling of the market is still weak, and analysts warn that foreign exits and expensive valuations continue to weigh investors’ confidence.

Prashanth Tapse, Senior Vice President (Research) of Mehta Equities Ltd, said that global commercial uncertainties and possible tariff reprisals by the US. UU. They add up to pressure. “The market is more concerned with the probable movement of the United States to correspond to higher tariff taxes on export nurses, which could affect developing countries, including India,” he said.