Mar 28, 2012, 05.52 PM IST
Read this space to know what the key budgetary reforms were and how they would affect your investment world. Crisil Research has listed down a few such reforms and its impact on retail investors.
Rajiv Gandhi Equity Savings Scheme is proposed to allow for income tax deduction of 50% 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.
2. Tax-free infrastructure bonds may offer good investment opportunities for retail investors
3. Reduction in STT would reduce transaction cost for mutual funds
Securities transaction tax (STT) has been reduced by 20% (from 0.125% to 0.1%) on cash delivery transactions. STT is payable on all transactions done on the stock exchanges.
5. Higher fiscal deficit could impact interest rate movement
The combined effect of lower tax and disinvestment receipts, and higher expenditure, mainly on account of subsidies, has pushed the fiscal deficit to 5.9% of GDP in the Revised Estimates for 2011-12. The fiscal deficit for 2012-13 has been pegged at Rs 5.14 lakh cr, which is 5.1% of GDP. Accordingly, net market borrowings through dated government securities to finance this deficit are enhanced to Rs 4.79 lakh cr. This would reduce the total government debt at the end of 2012-13 to 45.5% of GDP as compared to the Thirteenth Finance Commission's target of 50.5% of GDP.
Tags: Rajiv Gandhi Equity Savings Scheme , Tax-free infrastructure bonds , Securities transaction tax
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