Budget 2019 – $3 trillion economy by fiscal 2020

Budget 2019

Key Announcements on Income Tax:

  • Empty bag for salaried, as old slabs continues
  • Super rich to be squeezed more (2 crs & upward) with additional surcharge
  • Additional deduction of ₹1.5 lac on home loan interest paid offered – but for affordable house of ₹45 lacs borrowed, on or before March 31, 2020
  • PAN & AADHAAR number now becomes inter-operable
  • Pre-filled Tax return form to be available soon
  • EV purchase loan benefit (electric vehicle) – 1.5 lacs interest benefit on the loan
  • Cash withdrawals over ₹1 crore a year will attract TDS of 2%

BUDGET 2019 – Full of JOSH!

Budget 2019

The Modi government delivered an impactful budget today, just before the elections, showering multiple benefits to the Tax Paying Citizens. Key benefits are as under:

Tax Rebate:The government has proposed to introduce full tax rebate for individuals earning up to 5lacs. With Tax saving investments included, the tax rebate extends to income till 7.25lacs. (includes 1.50lacs under section 80C, 50k in NPS, 25k in health insurance)


How Mutual Funds will be taxed now – Budget 2018-19


How Mutual Funds will be taxed now – Budget 2018-19

Equity Mutual Funds

Fund Type Short Term Capital Gain Long Term Capital Gain (> 1 year) Dividend Tax
  • Equity Fund
  • ELSS Fund (tax saving)
  • Hybrid Fund – Balanced (Aggressive or Equity oriented)
  • Arbitrage Fund
  • Gain up-to 1Lac–Zero Tax
  • Gain > 1lac – 10% Tax
    without indexation
  • Cost on oldinvestments
    based on 31st Jan 2018 closing price##

## Which means, if you have invested INR 100 on 1st Jan 2016, and if you redeem on 2nd Feb 2018 @ INR 155, LTCG will be calculated based on the price on 31st Jan 2018. Let’s say on 31st Jan 2018, the value was INR 150, in-short you have to calculate LTCG on INR 5 only, provided the total gain exceeds 1lac.

** Dividend Tax; after adding 12% surcharge & 4% cess = 11.65%
** Capital Gain tax calculated(Short term or Long term), will also include surcharge based on your total income and 4% cess.


Budget Simplified – FY 2018-19

budget 2018-19

Talking to people around on budget this time; most of them are unhappy, as budget has not kept pace with the expectations, like for a salaried (US), no announcements on tax slabs, or tax exemptions 😉.

But for a budget, with elections just around the corner, our dear finance minister has maintained a fine balance on populist measures, economic growth & stability.

Let me highlight, key takeaways from the budget:




Article published in Mumbai Mirror (Times of India) on 5th Jan 2018. Link: https://mumbaimirror.indiatimes.com

“Spend less, save more” is a great resolution, but how do you actually achieve it? An expert offers advice.

The definition of insanity is doing the same thing over and over again and expecting a different result. Yet, when it comes to finance, that’s exactly what most of us do. If you’re determined to make this the year when things finally start to go your way, all it requires is some sensible shifting — which means, move out of wrong loans, investments, expenses and move into the right ones. Here are a few suggestions on how to achieve this.


Credit Card – do I have the freedom?

Credit Card

I still remember the day, final month of my post-graduation, and we have these credit card chaps standing outside the gate. As would be, I went ahead & applied for the card 😉

My job is three months away, and here I have this plastic card, which gives me the freedom & cash, and within no time, I used up 50% of my limit, without any income in hand. All in the premise that first series of pay, I will knock off the outstanding.


What’s Your Budget Personality?

What's your Budget personalities

Our personalities inform how we approach every part of our lives. From the workplace to friendships and even at home, your distinct style is uniquely yours when you interact with the world around you. This goes for budgets, too. Personalities often impact how you spend, save and manage your money, sometimes positively and sometimes impeding your progress.

Do you know your budget personality? Check out these four common types and corresponding tips to jump-start your road to better financial health. You just may recognize yourself!