Overall a good budget: LIC Nomura MF

India Infoline News Service | Mumbai |

Additional exemption under 80C will provide a limited window for tax exemption eligible mutual fund schemes.

The Finance minister has indicated that the present government is taking a long term view for bringing back the economy on track on a sustainable basis. The focus on legislative and administrative reforms is a good indication. Similarly expenditure commission, subsidy overhaul, FDI in many sectors is a very welcome step is executed effectively. The attention given to health care , transportation, education and energy requirements is good.

If the government is able to deliver on these proposals, then it will definitely help in achieving the Fiscal deficit targets and also rejuvenate the Indian economy.
On Financial sector , the single KYC and Demat account is a welcome step along with the income tax exemptions and limit extension.

For Mutual Fund sector, the change in long term capital gain will impact negatively and the support available to bring first time investors towards equity/debt investments will get severely compromised when compared to bank deposits. The additional exemption under 80C will provide a limited window for tax exemption eligible mutual fund schemes.

Overall a good budget and in-line with the fiscal prudence needed at this point in time.

 The author is Anutosh Bose, Chief Operating Officer, LIC Nomura Mutual Fund.
 

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