1- Current Economic scenario & growth story of India
2- New Norms
3- Market going forward
Current Economic scenario & growth story of India
· Fiscal deficit kept at 3.20% of GDP, though last yr target was
missed with actual at 3.50% against budgeted 3.20%
Ø Need to restrict it at
3.20% & gradually to be lowered to 3.00%.
· Revenue deficit is defined at 2.2% of GDP
Ø Need to bring it down to
Zero percent level.
· GDP expected to grow at 7.50%
Ø As most of the Global
economies are also growing.
New Norms
· Long Term Capital Gains Tax Re-introduced at 10% on more than
one year of holding & profit component of 1st Feb 2018 onwards on such LTCG
of 1 Lakh & above.
· Thus Dividend component of equities & equity fund are also
under purview of 10% flat Tax at source.
· Corporate tax was reduced to 25% for companies
with turnover below Rs 2.5 bn
· On the individual taxation front, standard
deduction was increased to Rs 40,000 along with additional benefits for senior
citizens.
Market Going Forward
· Much awaited corrections triggered by Budget as an excuse. No
wonder market is having further scope of correcting to 5% to 8%.
· 10% long term LTCG has certainly applied breaks to market march
which was result of Punters play. All of them are caught on wrong foot..
· New depth is created in market and expected to move forward post
corrections in a more affirmative way factoring in corporate profit &
adjusted correct PE ratio.
· Debt market will take couple of month’s time to see the dust
settling on 10 year yield & liquidity in market.
Ø Still Short Term Funds
are all season risk free investment avenue with holding period of minimum 3
years fetching around 6%-8% Tax free returns.
