I. How will budget 2017 affect your individual finances?
Change in income tax slabs for salaried individuals falling in the income bracket of Rs.2.5 to 5 lakhs has been reduced to 5% from 10%.
The New Tax Slab
- Surcharge of 10% on income of individuals above Rs.50 lakh and less than Rs.1 crore(new levy)
- Surcharge of 15% on income of individuals above Rs.1 crore(existing levy)
- Rebate under section 87A available to resident individuals reduced to Rs.2500(from existing Rs.5000) and available only to individuals with income up to Rs.3.5lakh(existing limit was Rs.5lakh)
II. Respite for Senior Citizens
The Prime minister had announced about a scheme for Senior Citizens with guaranteed returns in his New Year speech. Days before the Union Budget the government spelt out the details of the scheme, which will be managed by the LIC of India and launched in the current financial year. Scores of Senior Citizens would be pleased to hear about the Varishtha Pension Bima Yojana 2017, which was approved by the Cabinet.
The assured returns for a 10 year period at 8% per annum is a boon for Senior Citizens and with options for pension on a monthly, quarterly, and half yearly or annual basis would help them to meet their financial needs.Senior Citizens who have exhausted their savings in Senior Citizens savings schemes should consider putting money in this scheme.
Scheme Features
III. Respite for NRI Investors
If you tried visiting websites of several mutual funds in recent years, pop-ups would appear asking you if you were an investor based in US, Canada or India. If you opted for non-India option, you would be shown a different set of terms and conditions, which were part of compliance that AMC had to follow under the Foreign Account Tax Compliance Act (FATCA), resulting in several NRI’s not being able to invest in Indian mutual funds.
This was because when FATCA came into place, AMC’s stopped taking investments from US and Canada due to complexity associated with the compliance. Under FATCA, it is compulsory to share transaction details involving US citizens, including NRI’s. The documentation is standard for all investors. The KYC, FATCA details, additional KYCare mandatory for all. Presently, BirlaSun lifeMF, SBI MF, UTI MF, ICICI Prudential MF, DHFL Pramerica MF, L&T MF, PPFAS MF and Sundaram MF are the AMC’s that are accepting investments from NRI investors.
IV. Impact of Union Budget 2017-18 0n various sectors
Disclaimer:
The views of the authors/publishers should not be construed as advice. Investors must make their own investment decisions based on their specific investment objectives and financial positions and using qualified advisors as may be necessary. Opinions expressed in various articles are not necessarily those of Wealthmax Enterprises Management Private Limited(WEMPL) or any of its directors, officers, employees and personnel. Consequently, WEMPL or any of its directors, officers, employees and personnel do not accept any responsibility for the editorial content or its accuracy, completeness or reliability and hereby disclaim any liability with regard to the same. Stock picks and mutual fund snapshots are not exhaustive and should not be construed as recommendations.