The FM proposed following changes pertaining to savings and investments that are likely to have an impact during the coming fiscal.
- Introduction of a new scheme called Rajiv Gandhi Equity Savings Scheme has been proposed. The scheme will allow for income tax deduction of 50 per cent to new retail investors, who invest up to Rs. 50,000 directly in equities and whose annual income is below Rs.10 lakh. The scheme will have a lock-in period of 3 years. The details will be announced in due course. Hopefully, the scheme will include equity mutual funds too.
- The FM proposes to raise Rs. 60,000 crore through tax free infrastructure bonds as compared to Rs. 30,000 last year. This includes Rs. 10,000 crore for NHAI, Rs. 10,000 crore for IRFC, Rs.10,000 crore for IIFCL, Rs.5,000 crore for HUDCO, Rs. 5,000 crore for National Housing Bank, Rs. 5,000 crore for SIDBI, Rs. 5,000 crore for ports and Rs. 10,000 crore for power sector. More bond issues this year.
- Qualified Foreign Investors (QFIs) have been allowed access to Indian corporate bond market. Hope this contributes in making our bond markets more vibrant
- A deduction of upto Rs.10,000 on interest from savings bank accounts has been proposed for individual tax payers with salary incomes up to Rs. 5 lakh and interest from savings bank accounts up to Rs. 10,000, as they would not be required to file income tax returns. Some relief for ‘aam aadmi’
