Mumbai, 1st February 2019: FPSB India commends the interim Union Budget 2019-20 for its focus on agriculture, employment generation, health and education, ease of living with improvement in infrastructure.
The Budget has given relief to the income tax payers proposing that the basic exemption limit of Income Tax be raised to Rs 5 lakh from Rs 2.50 lakh. This will reduce the tax liability of the individual tax payer by Rs 12,500. Standard deduction too has been enhanced to Rs 50,000 from Rs. 40,000. Both the two proposals will directly benefit all income tax payers.
Mr. Ranjeet S. Mudholkar, Vice Chairman and CEO, FPSB India welcomed the budget proposals. He said, “….the Budget proposals are good and shall benefit the tax payers across all income slabs by putting more disposable income in their hands. By having given this option to spend the said amount to the taxpayers, it is upto him to choose to spend and pay indirect taxes, viz. Goods and Services Tax (GST) or to save. From Financial Planning perspective the savings can be channelized by the assessee into his long term investing for which various options are available in the market.”
He further emphasized that, “….the Mutual Fund industry has been doing an exceptional job in drawing people into long-term goal-linked investing which is helping to build-up savings for the common man. For this the ‘Mutual Fund Sahi Hai’ campaign has hit the right chord with the investors.”
He further added that other provisions such as no notional rent on 2nd home, increase of TDS threshold on interest income from banks and post offices from Rs. 10,000 to Rs. 40,000 and the GST, indicated that the Government is moving towards a tax regime where taxes shall be based on consumption.