The finance minister was walking a tight rope but he put up a realistic budget -- mostly progressive with a tinge of populism to please the common man. While he let some loose, he tightened the noose elsewhere ensuring a fine balance. On the personal taxes front, expectations were rife that the basic exemption limit would be hiked substantially but FM disappointed the Aam Aadmi on that front.
There is mixed news for retail investors, with the tax slabs being unchanged but with securities transaction tax being reduced. The finance minister has amended the Rajiv Gandhi Equity Savings Scheme and the eligibility has been increased to people having an annual income of Rs 12 lakh from Rs 10 lakh. The duration has also been increased from one year to three years, giving a breather for first time investors to space out their investments.
Retail investors whose annual income is between Rs 2 to 5 lakh can also benefit from a tax credit of Rs 2,000. The finance minister has also incentivised first time house buyers who take a housing loan of up to Rs 25 lakh, by permitting them to deduct an additional Rs 1 lakh interest against their taxes.
Given that the economy is in the recovery phase, investors generally know that the time is ripe for long-run investments. Yet, which investment options are to be made use of now is not as obvious to many. If you would like to clarify your doubts from an industry expert on planning for your investment options for this year, then join us for a chat with Anil Rego, CEO and founder, Right Horizons on Thursday, March 14, 2013 between 2 pm and 3 pm.
About Anil Rego
Anil Rego is the Founder & CEO of Right Horizons, an end-to-end investment advisory and wealth management firm with multi-metro presence.
(Due to circumstances beyond our control, date and time of chat may change)