Small Investors Expectations from Union Budget 2020.
SMALL INVESTORS FORUM
A7/303, Saket CHS LTD, Thane (West) 400601 # 8879528575
Sub: Small Investors Expectations from Union Budget 2020.
Madam,
We thank you for your gesture of inviting suggestions from the people of India for the Union Budget 2020.
Accordingly, we are herewith sending you the expectations and aspirations of the Small Investors - the common man.
1) The key expectation is increasing the threshold limit for the minimum amount not chargeable to tax, from Rs 250,000 to Rs 500,000. The last such increase was made almost 5 years back when this was increased from Rs 200,000 to Rs 250,000 in the financial year 2014-15.
2) There is also the expectation that the highest tax slab rate should be brought down from 30 per cent to 25 per cent, with a corresponding increase in the limit from Rs 10 lakh to Rs 20 lakh. This should increase disposable income in the hands of the common man.
3) Deduction under Section 80C of the Income-Tax Act, 1961 (the Act) provides for various types of payments made by the taxpayer which are eligible for relief such as PPF, fixed deposits, housing loan repayment (principal portion), insurance, expenditure made towards tuition fees, etc.
However, the limit under this section is very low. To boost such investments, expanding the limits for the purpose of 80C is the need of the hour.
The limit of deduction under section 80C of the Act was last increased from Rs 100,000 to Rs 150,000 in the Budget of 2014.
As such, the exemption limit should be enhanced to Rs 300,000, from the current limit of Rs 150,000.
4) ULIPs and Equity MFs should be brought on par on Tax Treatment,
a) Remove LTCG Tax,
b) Abolish STT on Equity Funds at time of redemption,
c) abolish DDT on Dividends paid by Equity-oriented Funds, and,
d) Switches within MF Schemes be exempted from Capital Gains Tax.
5) Apart from the increase in Income Tax exemption limit from 2.5 lakhs to 5 lakhs, the common man expects controlled Consumer Inflation, increased tex benefits on affordable housing, low GST on consumer durables & FMCG and also low-interest rates on the bank loan.
6) To ensure affordability and accessibility to medical treatment for all class of patients and in view of the ever rising inflation levels, it is time that the deduction towards such expenditure under section 80D of the Act should be increased from Rs.25,000/- to Rs. 40,000/-.
Madam,
We thank you for your gesture of inviting suggestions from the people of India for the Union Budget 2020.
Accordingly, we are herewith sending you the expectations and aspirations of the Small Investors - the common man.
1) The key expectation is increasing the threshold limit for the minimum amount not chargeable to tax, from Rs 250,000 to Rs 500,000. The last such increase was made almost 5 years back when this was increased from Rs 200,000 to Rs 250,000 in the financial year 2014-15.
2) There is also the expectation that the highest tax slab rate should be brought down from 30 per cent to 25 per cent, with a corresponding increase in the limit from Rs 10 lakh to Rs 20 lakh. This should increase disposable income in the hands of the common man.
3) Deduction under Section 80C of the Income-Tax Act, 1961 (the Act) provides for various types of payments made by the taxpayer which are eligible for relief such as PPF, fixed deposits, housing loan repayment (principal portion), insurance, expenditure made towards tuition fees, etc.
However, the limit under this section is very low. To boost such investments, expanding the limits for the purpose of 80C is the need of the hour.
The limit of deduction under section 80C of the Act was last increased from Rs 100,000 to Rs 150,000 in the Budget of 2014.
As such, the exemption limit should be enhanced to Rs 300,000, from the current limit of Rs 150,000.
4) ULIPs and Equity MFs should be brought on par on Tax Treatment,
a) Remove LTCG Tax,
b) Abolish STT on Equity Funds at time of redemption,
c) abolish DDT on Dividends paid by Equity-oriented Funds, and,
d) Switches within MF Schemes be exempted from Capital Gains Tax.
5) Apart from the increase in Income Tax exemption limit from 2.5 lakhs to 5 lakhs, the common man expects controlled Consumer Inflation, increased tex benefits on affordable housing, low GST on consumer durables & FMCG and also low-interest rates on the bank loan.
6) To ensure affordability and accessibility to medical treatment for all class of patients and in view of the ever rising inflation levels, it is time that the deduction towards such expenditure under section 80D of the Act should be increased from Rs.25,000/- to Rs. 40,000/-.
Aspirations of the common man are soaring high following repeated announcements by the Hon’ble FM to provide relief to individual taxpayers.
Therefore everyone is eagerly awaiting Budget Day.
Regards,
For Small Investors Forum,
Dayanand Nene. Ganesh Gopal Joshi. Amit Sawant. Rajan Chandok. Prasad Bedekar. Pramod Date.
Mrs. Nirmala Sitharaman ji,
Hon. Finance Minister,
North Block,
New Delhi 110 001.
Therefore everyone is eagerly awaiting Budget Day.
Regards,
For Small Investors Forum,
Dayanand Nene. Ganesh Gopal Joshi. Amit Sawant. Rajan Chandok. Prasad Bedekar. Pramod Date.
Mrs. Nirmala Sitharaman ji,
Hon. Finance Minister,
North Block,
New Delhi 110 001.
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