Union Budget 2007-2008

Finally Finance Minister rolled out his budget for 2007-2008 today.

It was not so as expected two three weeks before, a 'DREAM Budget', but is a good budget according to my view.

His budget has some (even little) feathers for AAM AADMI and all too.

Highly concentrated for education (included scholarship for 1 lac student in a year who were dropping school after 8 th std), inflation rate (reduced excise duty for most common food mixtures!), agriculture , and Textiles (this budget is more favorable for textile industry).

As for as (genuine) tax payer (like us!?!)concern, he increased the threshold limit of tax free income from 1 Lac to 1.1 lac for all, 1.35 Lac to 1.45 Lac for women and for senior citizen it is hiked to 1.95 lac from 1.85 lac. He didn't do any reformation in the slabs (most of the analysts expected Kelkhars recommendation may included with the reintroduction of 80 L for Senior Taxpayers), but he hiked the education cess from 2% to 3% ( the raised 1 percent will be used for the secondary education schemes).

So... It is a good budget so far.


For more readings on the budget and its highlights..
http://indiabudget.nic.in/ub2007-08/ubmain.htm
http://www.rediff.com/money/budget07.html

Yet Another March 31...

Hi All

I am writing this before the Finance Minister P Chidambaram has open the talk on Union Budget 2007-2008, in the urge of upcoming March 31 2007.

Even the post budget impact will mostly take in effect in the next financial year, some of them will affect this year also.

Many of us in the group of salaried, may be finalized our tax saving equipments before the 15 February 2007 as we have a choice of saving Rupees One Lac to avail the fringe benefits.

But how far we thing ahead in the matter of returns and risks?

As on today, with the total ceiling of Rs.1 Lac, we have a plenty of options. But choosing the right one is always a tough job. Most of us simply follow our father's way choosing the investment option like GPF or EPF , PPF and NSC etc,. Nothing wrong in it because these are all proven investment vehicles with zero percent risks. What is the return rate ? That is also good as on now minimum 8 percentage.

There are other options also available for investing to get tax benefits and they may give you a better returns that the above mentioned vehicles, if you are ready to take little or high risks base on your risk appetite.

There are various sites (moneycontrol.com,personalfn.com and much more )offering a such tool that will ask some simple questions you have to answer. Based on your answers, they will show you what kind of risk appetite you are.

First find what level of risk you can take then we will talk more about the other investment options!

We will meet agian!(and again!? :))