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Simplified KYC
KYC norms will be further simplified. The government has asked financial sector regulators like RBI, SEBI and IRDAI to set up completely digital process to do KYC.
The FM said, “The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.”
In addition, government to offer one stop solution to modify KYC details. With this, investors can modify their KYC details like change in address through a single window.
Limit enhancements and new scheme
There is good news for senior citizens. Investors who are 60 years and above can invest up to Rs.30 lakh in senior citizen savings scheme.
Further, the government has increased limit of tax exemption amount from Rs.3 lakh to Rs.25 lakh received on leave encashment. However, the scheme is valid for non-government employee.
In another development, the government has launched a new scheme which is dedicated to women called ‘Mahila Samman Saving Certificate'. Women can invest up to Rs.2 lakh and earn returns of 7.5% per annum. It is not clear if the interest is taxable yet.
Financial inclusion
Government to set up a national financial information registry to facilitated investor education and support financial inclusion.
The agency will have repository of financial and ancillary information.
Unclaimed shares and dividend get attention
Government to set up an integrated portal of all financial products having information on unclaimed shares and dividend. This will help investors reclaim their money.
Capacity building: More teeth to SEBI
SEBI will be empowered to develop, regulate and enforce norms for education at NISM. The market regulator will recognize NISM certification and degrees.
New income tax regime becomes more attractive
The government has introduced host of measures to make it more attractive. Here are a few steps:
- Limit of income tax rebate scheme increased to Rs.7 lakh from Rs.5 lakh under new tax regime
- Introduced new slabs in new income tax regime
|
Rs. 0-3 lakh |
Nil |
|
Rs. 3-6 lakh |
5 per cent |
|
Rs. 6-9 lakh |
10 per cent |
|
Rs. 9-12 lakh |
15 per cent |
|
Rs. 12-15 lakh |
20 per cent |
|
Above Rs. 15 lakh |
30 per cent |
- Standard deduction under new regime for individuals and pensioners having annual income of over Rs.15.50 lakh increased to Rs.52,500
- Wealthy will be benefited as surcharge is reduced from 37% to 25% in the new tax regime
Distributors should increase focus in rural areas
The government has given a boost to rural economy. It will infuse capital to develop production of ‘millets’
In addition, the government has increased farm credit budget to Rs.20 lakh crore. This will help large number of farmers raise money through loans at attractive interest rates.
Meanwhile the government has announced that it will recruit over 38,000 new teaching staff in rural areas to create more jobs.
Other key highlights:
- Per capital income has doubled in 9 years to reach Rs.1.97 lakh
- Indian economy is now fifth largest in the world
- Capex will increase to 13.7 lakh crore, an increase of 33%
- Fiscal deficit target for the current financial year is capped at 6.4% of the GDP. The Revised fiscal deficit target for FY 24 is 5.9% of the GDP
- Government may do away with tax exemption on insurance with high value of proceeds
- There will be no capital gains tax on conversion of physical gold into electronic gold and vice versa
- TDS on EPF withdrawal reduced from 30% to 20%
