'I don't know if we can put full responsibility on Mr Sinha's shoulder'

Deena Mehta

As far as stock markets are concerned, FDI limits have been revised. The receipt of funds in this sector will be seen in the long-term. Say in about a year or so.

In this Budget, the dividend tax impact is minimal. However, there may not be a flight of money from debt to equity funds. Dividend tax will affect the company promoters the most. Overall, the market will have a more psychological impact.

The limit for income tax clearance for property matters above Rs 2.5 million has been done away with.

NRIs can now repatriate funds which are received as income in India, such as dividend rent etc. This is a major step towards rupee convertibility.

There is something positive and negative in the Budget for everyone. It needs more in depth study before reacting to the it. Rationalisation of duties and reduction in subsidies will achieve a lot of positive impact on the ecomomy.

The promotion of tourism should aid hotel industry. Scams are a part and parcel of our daily life. It is our reaction to scams and action against the guilty that reduces the probability of such scams. We have not fared well in that department.

I don't know whether we can put full responsibility on Mr Sinha's shoulder. He is, after all, giving the country's balance sheet where we all have a role to play.

I do not trade my self but my research dept recommends cement, hotel and steel and shipping industry

Daily/weekly dividend paying funds will continue to pay dividends without much impact as far as equity funds are concerned because the tax rate is same as 10 per cent, though in hands of the holder. The income from debt funds will be charged in the hands of holders at applicable rates.

We need a balanced portfolio to the extent of our fixed income requirements. We should go for small savings investements. Investments in equities is equally necessry to better the portfolio overall yield.

I think people have lost money in the stock market because they looked at it more as a lottery and not an investment. The key is investor education.

There are enhancements in concessions on Indians transferring residence to India.

Open ended equity funds continue to enjoy tax benefits indirectly. Their expertise at fund management would be relied upon irrespective of tax incentives. There has been no change in the automobile sector.

Deena Mehta is former acting president, Bombay Stock Exchange.

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