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Budget 2017 – Impact on Personal finance

Without knowing about Personal Finance, It is difficult to make money and keep money so let us know the impact of Budget 2017!

Too much of bubbles were burst and too much of them were blown. Compare to all the previous budget this year was a different one. It was always seen that the railway budget is announced first and then on the subsequent day the rest of the budget is announced. But this time probably our finance minister Mr.Arun Jaitley was on a stringent timeline.
Budget 2017 was not a populist budget, but at the same time, there was no such emphasis on negative aspects as well.

I wanted to balance out the budget announcements. So I thought of 5 things that made this budget look GOOD:

  1. Our Finance Minister has rightly pointed out that the pressure of paying taxes is more on the salaried class so to relieve this burden the step taken was very significant. The income group falling under the Tax Slab of 2.50 – 5 lakhs was 10% which has now been reduced to 5%. The middle-class individuals can now breathe a sigh of relief!
  2. Government wants to encourage all those who have never filed the tax returns so that we comply to the tax rules without any fear. Therefore there will be no scrutiny on first-time taxpayers.
  3. Small and Medium enterprises got a point as a boosting factor where the tax rates were deducted from the existing 30% to 25% effective from the next financial year onwards.
  4. Holding period for long term capital gains was brought down to 2 years from the existing 3 years. This will encourage people to invest in real estate sector which was going through a rough phase from the past couple of years.
  5. Excess taxes needs to be borne by an individual who is earning above 50 lakh rupees p.a. It is in the name of surcharge that is 10% extra.

 

Impact-on-personal-finance

Then I thought of 4 things that could have made this budget look WOW:

  1. The bulls would have been high on Dalal street If there would have been any reduction in corporate taxes.
  2. There was no heed given on demonetization funds or taxes collected. There was not even a spillover of demonetization effects which was expected the most.
  3. Any increase in investments under sec 80C could have brought a new light of hope for investors, equity market or financial service industry.
  4. There was no clear road map on GST as in no specific date was mentioned. By not mentioning any changes in indirect taxes was a clear hint that it may be rolled out any time soon.

In all, I felt like too much option to choose from the things spread on my banana leaf but still missed out the feeling of a complete meal. Personal Finance is what rightly explained by David.W.Robbins, “Many will want what you have, but few will do what you do.”

Everything else, you have Money Anna!

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