 "Budget 2013: Will FM cut tenure for FDs?")
By Lovaii Navlakhi, MD & Chief Financial Planner, International Money Matters
The recently launched Rajiv Gandhi Equity Savings Scheme, or RGESS, seems to fuel some delight in investors during a period of economic gloom. However, investors are looking for easing of norms in the forthcoming Budget.
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Investment options. Reuters[/caption]
At present, only investors with a taxable income below 10 lakh and first time equity entrants are part of it. If the government allow some relaxation of these rules, individuals not falling under these categories will also be able to enjoy the benefit of RGESS. Moreover, investors want the ELSS (equity-linked savings schemes) to continue.
Not only that, the investors have further expectations. They are hopeful that the tax saving infrastructure bonds, which allowed them to save Rs 20,000 on taxable income in the two financial years prior to the current one, will be brought back under Section 80CCF.
The small investors are also looking for an expansion in the exemption limits under Section 80C, which is currently capped on Rs 100,000. This would enable investors to save more in a period affected by rocketing inflation particularly in commodities.
If the tenure of fixed deposits for tax saving is brought down to three years at par with ELSS, it will encourage investors to opt for this saving tool.
The views by Lovaii Navlakhi first appeared on moneycontrol.com