In this video, I am going to speak about some key points related to Personal Taxation, Investments

and Capital Markets, from the Union Budget

Personal Taxation

Govt. will introduce Faceless scrutiny of tax assessment, and online pre-filled documents

for filing of returns with data on Salary, income and capital gains.

No changes in tax slabs except for taxable income above 2 Crores.

Effectively a person having net taxable income of 2 Crores plus will get taxed at 39% due

to 25% surcharge and above 5 Crores will get taxed at 42.7% due to 37% surcharge.

Additional income tax deduction of ₹1.5 lakh for interest paid on home loans for houses

costing below ₹45 lakh till March 2020.

₹1.5 lakh income tax deduction on interest paid on loans for the purchase of electric

vehicles.

Investments

The Government has proposed the inclusion of ETFs investing in Central Public Sector

Enterprises under the ELSS category.

Income tax exemption limit for lump sum withdrawal from NPS increased to 60% from 40%.

Capital gains exemption arising from the sale of a residential house upon investment in

startups has been extended up to 31st March 2021.

The funds raised by startups will not require any kind of scrutiny by the Income Tax department

following the requisite declarations and information provided.

The waive-off for startups to justify the fair market value of their shares issued to

a category one AIF which include social venture, venture capital, SME funds is now also extended

to AIF category two funds which include private equity, real estate and debt structure funds.

Category I and II AIFs will be allowed to 'pass-through' their losses to investors.

This can be used to offset other capital gains.

Capital Markets

The government also proposed to relax know-your-customer (KYC) norms for foreign portfolio investors

and Merge the non-resident Indian (NRI) portfolio investment scheme route with the FPI route

to encourage more NRIs to invest in the country's capital markets.

The government also hopes to enable listing of social sector enterprises on a social stock

exchange.

Recapitalization of PSU banks with a capital infusion of Rs 70,000 crore.

The government would raise part of its borrowing in foreign currency.

The government will work with the RBI and Sebi to enable stock exchanges to allow AA-rated

bonds as collateral in the corporate tri-party repo market.

To see the impact of this year's Union Budget on your investment portfolio please read our

research report, you can also subscribe to our reports by sending a mail to micontact@mitraz.financial

This is Satish Anand from Mitraz Financial, Helping Clients Realize Their Aspirations.