Rs 40,000 crore: Finance Minister Nirmala Sitharaman said in her Budget speech that the new simplified personal income-tax regime will mean that the government will forgo Rs 40,000 crore worth of revenue.
- The new personal income tax regime offers lower tax rates to individual taxpayers, but takes away the numerous tax deductions and exemptions that were available previously. It will be a simpler tax regime.
- Those who opt for it will get pre-filled forms that they will be able to just sign and submit.
- This, in turn, means that taxpayers will have more money left in their hands. Now, they can invest any monthly surplus they have just towards building wealth.
- Earlier, many investors were mis-sold products that helped them save taxes but were not the best for wealth creation. Investors will be able to escape this trap now.
- Investors should now focus on products that can help them achieve their financial goals.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.