Small investors stand to gain in planned tax regime

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Aug 13, 2009 22:24 IST

Even as all investment instruments that qualify for benefits of income tax under Section 80C and Section 80CCD will move from exempt-exempt-exempt (EEE) regime to exempt- exempt-taxed (EET) and will be taxed at the time of withdrawal, small- and mid-sized investors will be better off.

Reason: The proposed rise in deduction limits from Rs 1 lakh to Rs 3 lakh.

The benefit of this increase, proposed by the finance minister, Pranab Mukherjee, and put for public debate on Wednesday, more than makes up for the capital gains tax that would be imposed on all investments at the time of withdrawal.

 

also read

PSU banks hit by low non-core business valuations

blog comments powered by Disqus