An eminent panel of experts put forth their expectations from forthcoming Budget 2018 on personal income tax front in a special discussion conducted by Moneycontrol.
The countdown to the Union Budget has already begun and on top of the wishlist remains expectations of people regarding personal finance. Increasing basic exemption limit, enhancing 80 C limit, higher reimbursements for medical and travel expenses, higher tax exemption limit, are some of the wishes that people have on their mind.
An eminent panel of experts discussed things Finance Minister Arun Jaitley can include in Budget 2018 to boost the middle-class. The panelists included Rahul Parikh, CEO, Bajaj Capital, Rahul Agarwal, Director, Wealth Discovery, Rakesh Nangia. MD and Founder, Nangia & Co and Gaurav Talwar, Partner Felix Advisory.
Here are some excerpts from the discussion:
Rakesh Nangia: Education and medical should be addressed this Budget because that will give people more gains. Standard deduction should also be reintroduced for the salaried people.
Gaurav Talwar: Tinkering with basic exemption limit may not give a lot of advantage to people. Pushing the highest tax limit to may be 10-15 lakh is likely to be more beneficial and leave more money in the wallets of salaried class. In addition, travel, education and hostel allowances can be reworked and that would help salaried people more.
Rahul Agarwal: Talking about balancing portfolio, Agarwal said that any tinkering with long-term capital gains (LTCG) will have a negative impact on market.
Another wish for the Budget includes student loan exemption. At present, the exemption of interest rates is only for eight years and this should be increased to the entire tenure of the loan.
Rahul Parikh: Finance Minister should promote financialisation of savings. Healthy capital market will help the economy grow faster.
Select questions from the audience:
Financial savings should be dealing with tax incentives. How to go about that?
Rahul Parikh: India is a nation of savers and people prefer fixed income deposits as saving instruments which is robbing the economy. FM should focus on micro and put more money in the hands of common man so that the consumption is spurring in the economy.Rahul Agarwal: For people to have more money, they need jobs and government should make Indian industry more comparative. Corporate taxes should be brought down.