Finance Minister P Chidambaram's Budget has been getting mixed responses. But what is in store for the Aam Aadmi (Common Man)?
1 . Rajiv Gandhi Equity Savings Scheme
The scope of the UPA government’s ambitious Rajiv Gandhi Equity Savings Scheme was widened in Union Budget 2013-14. The scheme has been liberalized to encourage retail investors to devote funds into mutual funds. Tax benefits under the scheme have been extended to 3 years.
The Finance Minister also raised the income level of investor eligible for the scheme from Rs 10 lakh to Rs 12 lakh per annum.
Under the Rajiv Gandhi Equity Savings Scheme, an individual with an income of up to Rs 12 lakh gets tax incentives for investing up to Rs 50,000 in the stock market.
2. Tax Exemption for first home loan borrowers
The Union Budget was encouraging for people seeking home loans. First time borrowers home loans up to Rs 25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs 1 lakh. This may cheer prospective homebuyers.
3
. Tax Credit in Lowest Slab
While the Union Budget did not have any substantial changes in the personal income tax slabs, the Finance Minister offered a minor relief to those in the lowest tax bracket.Finance Minister announced a tax credit of Rs 2000 for those with taxable income in the Rs 2-5 lakh bracket.
4. Urban HousingFinance
Minister proposed an Urban Housing Fund with a corpus of Rs 2000 cr to increase the availability of residential accommodation in urban areas. National Housing Board will set up the Fund in consultation with the RBI
5. Inflation-indexed bonds to Protect Saving
Inflation has been a huge headache for the Aam Aadmi in the last few years.
Union Budget 2013-14 announced the issue of inflation-indexed funds. The Finance Minister via these funds seeks to protect savings of the poor and middle classes from the impact of inflation.
The instrument will be in the form of ‘inflation-indexed bonds or inflation-indexed national security certificates. The structure and tenure of the instruments will be announced in due course”.
The Finance Minister also raised the income level of investor eligible for the scheme from Rs 10 lakh to Rs 12 lakh per annum.
Under the Rajiv Gandhi Equity Savings Scheme, an individual with an income of up to Rs 12 lakh gets tax incentives for investing up to Rs 50,000 in the stock market.
2. Tax Exemption for first home loan borrowers
The Union Budget was encouraging for people seeking home loans. First time borrowers home loans up to Rs 25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs 1 lakh. This may cheer prospective homebuyers.
3
. Tax Credit in Lowest Slab
While the Union Budget did not have any substantial changes in the personal income tax slabs, the Finance Minister offered a minor relief to those in the lowest tax bracket.Finance Minister announced a tax credit of Rs 2000 for those with taxable income in the Rs 2-5 lakh bracket.
4. Urban HousingFinance
Minister proposed an Urban Housing Fund with a corpus of Rs 2000 cr to increase the availability of residential accommodation in urban areas. National Housing Board will set up the Fund in consultation with the RBI
5. Inflation-indexed bonds to Protect Saving
Inflation has been a huge headache for the Aam Aadmi in the last few years.
Union Budget 2013-14 announced the issue of inflation-indexed funds. The Finance Minister via these funds seeks to protect savings of the poor and middle classes from the impact of inflation.
The instrument will be in the form of ‘inflation-indexed bonds or inflation-indexed national security certificates. The structure and tenure of the instruments will be announced in due course”.
The Union Budget was encouraging for people seeking home loans. First time borrowers home loans up to Rs 25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs 1 lakh. This may cheer prospective homebuyers.
. Tax Credit in Lowest Slab
While the Union Budget did not have any substantial changes in the personal income tax slabs, the Finance Minister offered a minor relief to those in the lowest tax bracket.Finance Minister announced a tax credit of Rs 2000 for those with taxable income in the Rs 2-5 lakh bracket.
4. Urban HousingFinance
Minister proposed an Urban Housing Fund with a corpus of Rs 2000 cr to increase the availability of residential accommodation in urban areas. National Housing Board will set up the Fund in consultation with the RBI
5. Inflation-indexed bonds to Protect Saving
Inflation has been a huge headache for the Aam Aadmi in the last few years.
Union Budget 2013-14 announced the issue of inflation-indexed funds. The Finance Minister via these funds seeks to protect savings of the poor and middle classes from the impact of inflation.
The instrument will be in the form of ‘inflation-indexed bonds or inflation-indexed national security certificates. The structure and tenure of the instruments will be announced in due course”.
Inflation has been a huge headache for the Aam Aadmi in the last few years.
Union Budget 2013-14 announced the issue of inflation-indexed funds. The Finance Minister via these funds seeks to protect savings of the poor and middle classes from the impact of inflation.
The instrument will be in the form of ‘inflation-indexed bonds or inflation-indexed national security certificates. The structure and tenure of the instruments will be announced in due course”.
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