The maiden Financial Budget of the Modi Government was presented today. The highlights of the same which would impact your Personal Finance Planning are as follows:
- Income tax exemption limit raised from Rs 2 lakhs at present to Rs 2.5 lakhs
- For Senior Citizens Income tax exemption limit raised from Rs 2.5 lakhs to Rs 3.0 lakhs
- Section 80C investment limit raised from Rs 1 lakh to Rs 1.5 lakh for tax benefits
- Tax exemption on interest component on housing loan raised from Rs 1.5 lakhs to Rs 2 lakhs
- Annual Public Provident Fund PPF ceiling to be enhanced from Rs 1 lakh to to Rs 1.5 lakhs
- A special small saving scheme will be introduced encourage savings towards education & marriage of girl child
- Kisan Vikas Patra to be reintroduced for planned and unplanned savings under small savings schemes
- Proposal to Introduce single demat account for all types financial transactions
- Proposal to Introduce Standardized KYC Norms and single KYC across financial sector.
- EPFO to launch "unified account scheme" to ensure Provident Fund portability.
- Insurance sector FDI to be hiked to 49%, from 26% leading to increase in Insurance penetration.
- Long Term Capital Gain tax on Debt Mutual Funds increased from 10 % to 20% and tenure increased from 12 to 36 months.
The budget is in line with the populist with an under tone of social development where our new Finance Minister plays white bearded " Santa". The major changes are to promote savings and increase the investments among the lower income groups . Also, FDI entry would ensure competitive pricing in insurance.
So, start planning today for the goals in line with the improved economic conditions.
Let Saarthi, be your guiding light....
Thanks and Regards
Team
Email: saarthifp@gmail.com
