Budget 2013-14: Small investors want FM to expand scope of RGESS

By Lovaii Navlakhi, MD & Chief Financial Planner, International Money Matters

Investors are hoping for some positive steps like expanding the scope of RGESS – Rajiv Gandhi Equity Savings Scheme. Presently this scheme is open only to investors with a taxable income below 10 lakhs and who are first time equity investors. Investors also want the ELSS schemes to continue and not be phased out.

They are also hoping that tax saving infrastructure bonds which allowed them to save Rs 20000 on taxable income in the two financial years prior to the current one be brought back i.e. Section 80CCF.

If the exemption limits on Section 80C is increased from the present Rs 100,000 would be a big boost to investors across the board. Further if the time period for tax free FDs is reduced to 3 years in tandem with limits on ELSS, it would encourage them to look at the safer and conservative fixed deposits.

Let’s see how many of these expectations the Finance Minister is able to fulfil.