From 12.5% to 97%: The roller coaster of Income tax

Today’s Daily Byte

An uneventful day. Today, the market again tried to come closer to 25,000 but didn’t quite make it, much like batsmen in their nineties getting nervous. Nothing wrong with that; it can take its own sweet time to cross 25,000. However, another part of the market made sure that the markets remained buoyant and near the 25,000 territory.

Today, we will discuss capital gains tax, its fairness, and how it is applied in other countries. There is a lot of backlash on the government for capital gains, some of it justified, some not.

Reading Time : 4 Minutes

The roller coaster of Income tax

Back in 1945, the income tax rates were quite different from today. The rates were listed in old Indian currency terms, like pies and annas. For example, four annas equaled 25 percent. The top slab was at two annas, which translates to 12.5 percent. Despite the low rates, the tax structure started to change drastically after independence, leading to much higher rates in the following decades.

Right after India gained independence, income tax rates began to rise significantly. . . . . .

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Drawdowns are good !

The S&P 500 has nearly 195 years of data, showing the annual returns and the maximum drawdowns.

Drawdowns are the peak-to-bottom declines in each year.

In this extensive data, there are very few years with negative returns. Between 1928 and 1951, due to the Great Depression and World War II, there were . . . . .

Reading Time : 3 Minutes