Moneycontrol
Feb 28, 2013 05:45 PM IST | Source: Moneycontrol.com

Budget Reactions: Reduction in STT beneficial for small investors

The budget was a mixed bag for the small investor, with a reduction in securities transaction tax, but an introduction in a commodities transaction tax (in non-agricultural commodities).


The budget was a mixed bag for the small investor, with a reduction in securities transaction tax, but an introduction in a commodities transaction tax (in non-agricultural commodities). Some new investment instruments are in the offing such as tax linked government bonds or tax linked national savings certificates.

Investors whose annual income is between Rs. 2 - 5 Lakhs can also benefit from a tax credit of Rs. 2,000. The finance minister has also incentivized first time house buyers who take a housing loan of up to Rs. 25 Lakhs, by permitting them to deduct an additional Rs. 1 Lakh interest against their taxes.

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