The finance minister had promised a ‘never before’ kind of budget this year, which aims at boosting the financial morale.
The SEBI-registered Investment Advisor, expects an increase in the limit of Section 80C. Currently, this stands at Rs 1.5 lakh per year. This limit easily gets exhausted for most salaried individuals. Increasing the limit to Rs 3 lakh will be a good start, he says.
The government should also consider the removal of long-term capital gains tax on equity investments. Currently, the LTCG is taxed of 10 percent without indexation on gains above Rs 1 lakh. Removal of this tax will boost the market sentiments substantially in a sustained manner.
Health has come back to the focus of everyone’s life due to the pandemic. This is a good time to further incentivize people to insure their health. The government should consider increasing the upper limit on health insurance premiums.