Find out all about the budget and how it affects your pocket, that too, minus the jargon. Get tips from experts on what you can do now. Also meet people like you and find out what they think about the budget.

Name: Dr Danish Barmare

Age: 30
Industry: Medicine
Profession: Dental Surgeon
Income: Rs 10 lakh per annum (gross)
Investments: Rs 100,000 per annum in mutual funds, Rs 60,000 per annum in Public Provident Fund (PPF) and Rs 20,000 in National Savings Certificate (NSC). 
Debts: Home loan of Rs 8 lakh for 15 years.

What happened in the budget for him?

The measure: Banking cash transaction tax withdrawn.

The impact: Till now, a tax of 0.1% was levied on any withdrawal over a specified limit from the current account. This limit was Rs 25,000 for individuals and Hindu Undivided Families and Rs 1 lakh for others. Professionals with frequent withdrawals from their current account can now breathe easy.

The measure: Firms with income less than Rs 10 lakh exempt from service tax.

The impact: Earlier, the limit for exemption was Rs 8 lakh. This has gone up, thus giving relief to professional firms that come under the wider slab.

The measure: As far as his individual income is concerned, tax slabs have changed for the better. Here are the new tax slabs for men,

However, surcharge and education cess remain the same.

The impact:

What is his reaction?

“There should be no import duty on life-saving technology because the cost is finally borne by the patients. But the good news is at least the excise duty for bulk drugs and pharma products have been reduced which means less cost for patients. Reduction of bulk drug means reduction in the price of antibiotics; again this is excellent news. I am also happy that customs duty on steel melting has been cut because we also use steel products in our field.”

What should he do now to plan his money better?

-          Since his tax outgo will decrease, he will have more money on hand to save and spend. He must choose his investments wisely and save smartly. Expert, HP Ranina says, “The budget is a good move for common tax payers. They can make substantial saving following the enhancement of the threshold.”

-          Although he can invest in postal term deposits to get a deduction, he must consider instruments like equity linked savings schemes, the returns of which are more tax efficient. ELSS is also good from a long-term wealth creation point of view. Alternately, he can look at public provident fund schemes that give tax-free interest.  

Want to know what Dr Danish had expected from the budget? Read this:  Cut duties on medical equipment