New tax regime likely to boost income and purchasing power of people - Share India
Mr Ajay Patel, CEO, Share India Insurance Brokers said "We believe the union budget 2020 overall has tried to touch upon all facets impacting our economy, be it education, agriculture, MSME; IT among others, The impact of new measures taken by the finance minister Nirmala Sitharman would be visible in the long term."
Here is our take on few significant steps announced by FM.
1) The new tax regime would bring about a fresh perspective to personal income tax, while it may give more money in the hands of the individual, it would have to be seen whether this results into higher investment in Insurance and other long-term savings instruments.
2. The listing of LIC is a big move towards the disinvestment programme of the govt. The IPO could fetch a huge premium considering the small equity base which LIC has. The process though might not be easy as it would require amendment of the LIC Act first.
3. The abolition of DDT could attract investments but it being taxed at the hands of the individual is a dampener.
4. The increase of deposit Insurance to Rs 5 lac would definitely cheer the traditional investors and the decision has come at the apt time considering the plight of PMC bank customers.
5. The focus on doubling the farmer's income with the 16-point action plan by the FM is a positive move towards the revival of the agriculture sector. Measures on 100 water stressed district would help the cause.