Budget 2014: Finance Minister Arun Jaitley retains taxation structure for super …

This year’s bill has extended a levy. Some experts see a silver backing in this murky scenario. “Super abounding taxpayers should be relieved that a bill has usually defended a 10% surcharge and not increasing it,” says Kuldip Kumar, executive director, PwC. The abounding taxpayers will also have to contend with a changes in a taxation manners relating to debt funds.

Till now, they could deposit in debt mutual funds and get taxed during a reduce rate after 1 year. The bill has increasing a smallest holding duration to 3 years, that will diminish a liquidity.

Also, a choice to compensate a prosaic 10% taxation has been removed. “Investors will no longer have a choice between prosaic 10% taxation or 20% taxation after indexation.

The indexation choice will turn a norm,” says Divya Baweja, partner, Deloitte Haskins and Sells. However, a saving cause is that a bill paves a approach for launch of real-estate investment trusts (REITs) that abounding taxpayers could deposit in.

Also, a launch of retirement supports could assistance them save for retirement in a some-more pure and cost-effective manner.

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