Discussions on Budget - 2018

[Nicky G]

I agree. This is wrong on many levels. They even did that with PPF. First they raised the limit from 1L to 1.5L, and people rushed to throw their money in. Then they reduced interest rates from 8.6% to 7.6%. Now that money is lockedup for 15 years.

They did the same thing with EPF and Atal Pension Scheme. First they advertised it as a tax saving instrument, then they tried to tax PF, and the pension scheme has 60% of its corpus on maturity as taxable income. This has a lock in period until the individual turns 60. Most middle class, and even lower middle class will easily have saved more than 10L by they are 60. So this person, who has never been in the 30% tax bracket all his life, will have to pay 30% tax on 60% of their corpus as per the 30% tax bracket because of his pension withdrawal.

Its essentially fraud and false advertisement. Lure people in with tax saving and then hike the tax up. A company doing such a thing might be in trouble if they weren't smart about it, but since its the government doing such a thing, they can't be touched.

They'll become that much poorer over time. They have no other option. Equity, even with LTCG gives more YoY returns than gold or real estate. If not equity, then where will these people park their money? savings account? FD? PPF? they will become comparatively poorer compared to those who invested in equity. Even if LTCG becomes 20% in the future, your CAGR will only reduce by 1.5% at the most (assuming a 20 year investment period). Instead of growing by 15, you'll have grown by 13.5%. That's still more than the 5-6% growth rate of gold/real estate.

They want to turn India into a manufacturing-export hub, so expect the rupee to be artificially inflated to 75-80rs/ per 1$, like Japan did, to lure FDI. Those who keep their money in fiat instruments will be the biggest losers, especially debt bonds and government bonds.

Markets will start seeing growth only April onwards. New people who invest now can see their first gains in a couple of months. Those who lost money in the recent fall will have to wait till September to cover their losses see overall net positive gains.

Sure there are no good options here, but what you're ignoring is the risk averse nature of Indian people, particularly once they see a market crash, where their hard earned savings are wiped out. They'll opt for a lower rate fixed return rather than go for a risky venture. New people might be tempted into investing at lower valuations.

 

[Haldiram]

Sure there are no good options here, but what you're ignoring is the risk averse nature of Indian people, particularly once they see a market crash, where their hard earned savings are wiped out. They'll opt for a lower rate fixed return rather than go for a risky venture. New people might be tempted into investing at lower valuations.

Ohh yes, that's a possibility. Basically one cannot rule out that people will make irrational choices based on sentiment. As far as cold logic goes, equity still works.

PS : Having less equity holders actually benefits shareholders, as it makes them the beneficiaries of a larger % of the profit, than if the company was held by a larger number of shareholders. Most MFs have given a return of 35% in the last year, despite GDP growing at 6-7%. This anomaly is because only 60-70L Indians are invested in equity as per SEBI's count of DeMat accounts. So the profits are monopolized by a smaller net of investors.

Hold on to your units like a zombie ; Arra will do the rest

 

[SELVAM]

Share markets LIVE updates: Sensex, Nifty deep in red; Investors lose around Rs 4.95 lakh crore amid sell-off in opening trade

http://indianexpress.com/article/bu...sh-global-cues-top-shares-gains-loss-5053029/

 

[Flame Thrower]

As predicted : The Sensex has fallen by an additional 310 points after it's initial 850 point collapse since the budget.

@Flame Thrower be like :

"BC, kidhar fas gaya. "

Nahi Bhai,

I've decided that I'll not take out my Mutual Funds money at least for 10yrs.

I spend 5k per month on Food alone. I stay in PG(job karna hai)

Another 5k per month in Mutual Funds hardly affect my freedom to spend on rest.

TBH, in overall 1.2 yrs of investment, I hardly checked my MF once a month or two.

 

[tharun]

Markets will fall even more reasons:
1)Bond yield are spiking,our increased by 100 basis points means 1% in last 3-4 months.
2)Too much money is overflown to markets,time for real valuations.
3)Major markets are falling, so our markets will follow the trend.
4)FED is committed to increase the interest rates in following quarters.

Now RBI need to remain calm and lets the dust settle,because the bond yield already increased so if RBI increases the interest rates that will add fuel to falling markets.

 

[captscooby81]

Looks like even WB has lost confidence on Indian budget poor guy lost $5 Billion ..Expect him to support Raul baba for Indian PM along with Part time US presidential post ...

congress Pidi s might be delighted with this development

$5.1 Billion Gone in 24 Hours: Warren Buffet Biggest Billionaire Loser After Wall Street Crash
Monday’s Wall Street crash wiped off the fortunes of the world’s 500 richest people by $114 billion, says a Bloomberg report.

Share markets LIVE updates: Sensex, Nifty deep in red; Investors lose around Rs 4.95 lakh crore amid sell-off in opening trade

http://indianexpress.com/article/bu...sh-global-cues-top-shares-gains-loss-5053029/

 

[Indian Sniper.001]

For all those complaining about nothing done for middle class - read this.

-----------------------------------------------------------------------------------------------------------------------------------------------

This government is the one which has actually given the most to the salaried middle class and we are planning to remove the same government.
I am not a very big fan of writing serious stuff related to debatable issues like Politics, Religion, Economy etc on Facebook as I believe that it is my personal space meant for sharing a few laughs and life updates with my friends and family. If at all, I ever talk about it, I always crack some joke related to it.

On 1st February 2018, Finance Minister presented the General Budget in the Parliament and I, like any other salaried middle class, was glued to the television just to listen to the point of my interest, that is, how much tax relief will be given to me this time. The announcement of tax rebate never came. Like all the salaried middle class, I got very angry and vowed not to vote for this government ever again. Slowly, but surely, my anger subsided and then I decided to look for any valid reason due to which they decided this. I had made up the mind to punish them in next elections if I could find that a grave Injustice had been done to me and hence, I did R&D on my own so that I don’t follow the herd mentality and make an informed choice. Since this information is very important, therefore I am sharing this with all of you here.

Most of us were expecting at least a tax slab raise to INR 3 lakh per annum from INR 2.5 Lakh per annum which means a saving of INR 2500 per annum

1. My home loan interest rate at the end of 2013 was between 9.5 to 11.25%. It has come down to under 8.5% now. (Keeping SBI as Reference) Even a difference of 2% Rate in a loan of 30 lakhs gives you savings of 45000 Annually, as per SBI Home loan calculator. Is that not for the middle class?
2. Average Consumer Price Index (CPI) was 10.92% in 2013 while it is 2.49% right now. JUST IMAGINE, what would have been the prices of the goods of common usage if such a high CPI rate was still there.
3. Fiscal Deficit was 4.1% in 2013 while it has been targeted to be 3.3% for 2018 (Through this budget only). If we don’t reign in the fiscal deficit, it will lead to manipulation of capital structures, interest rates will lead to a decrease of net exports and will result in even higher taxes and higher inflation. So, dear friends, the budget is also aimed at keeping the inflation in check (Such are the strange ways of Economics).
4. One thing which I can’t understand is the fuel prices. Petrol Price was INR 78.46 in Mumbai in 2013 while it is now 80.94. Same is the case with Diesel as it was INR 60.8 in 2013 and now it is INR 68.25. That too after Crude oil prices being lower as compared to 2013.
5. Let us now come to the moot point, that is, the Tax rebate for Salaried middle class. Big decisions like these can never be viewed in Silo. We also need to find out a pattern and if there is any rationale behind it. Most of us were expecting at least a tax slab raise to INR 3 lakh per annum from INR 2.5 Lakh per annum which means a saving of INR 2500 per annum as it, in any case, fetches a tax of 5% only to the Government or INR 208 per month. Is it such a big amount that our world will turn upside down?Remember, it is just INR 2500 savings for us but for the government, it is an extra spend of INR 2500 x 6.3 Crore = 15750 Crore. Is it a small amount? So, just for the sake of savings of 208 per month, Government would have to bear the brunt of 15750 Crore extra and remember, this would have been further added to fiscal deficit as explained above which in any case would come back to haunt you in the form of higher taxes and inflation.
6. Now, comes the most important point. Go through it and then decide your voting preference. From 2009 to 2014, the tax rebate ceiling was increased from 1.6 lakhs to 2 lakhs per annum. From 2014 till date, the ceiling has been increased from 2 lakh to 2.5 lakh. For senior citizens, it has been increased to 3 lakh and for very senior citizens, it has been increased to 5 lakh. Home loan deduction limit has been hiked to 2 Lakh. Also, don’t forget that from 2.5 lakh to 5 lakh income, you are now required to pay 5% tax instead of the earlier 10% and also, the standard deduction of INR 40000 has also come into the picture now. Stent prices were reduced to 35000 from 1.5 lakhs and knee replacement cost dropped down to 45000 from 1.5 lakhs. Insurance of 2 lakh Rs at Annual Premium of Rs 333 is also given by this Government. Are these not for the middle class? This government is the one which has actually given the most to the salaried middle class and we are planning to remove the same government to bring one which in any case will keep taking taxes from us and will keep filling its pocketsinstead of using the tax money properly?

It was the media and our own psyche that built up that expectation and not the government. They never gave any official indications or statements.

So, in a nutshell, this government has already given a lot to the middle-class honest taxpayers like me. I am already saving around 45000 Rs annually with a drop in home loan interest rate and still I am unhappy that an annual tax saving of Rs 2500 has not been given to me. Is it justified? Yes, they might be charging more as far as Fuel Prices are concerned but I still know, that all my tax money, whether it is in the form of Direct tax, or Indirect Tax, is not going into the pockets of Corrupt Politicians of the previous regime. Just because I got angry because I was expecting tax Rebate because this was the last full budget of the Government before general elections and hence, I was EXPECTING some doles for me, doesn’t mean that I will again throw my country into the same quagmire of corruption & red tapism that my country has been suffering since 1947. It was the media and our own psyche that built up that expectation and not the government. They never gave any official indications or statements.

~ https://www.pgurus.com/how-is-budget-2018-beneficial-for-the-middle-class/

 

[Sourav Kumar]

https://www.pgurus.com/m-r-venkatesh-shares-thoughts-budget2018-missing-process/

Real discussion on budget!

 

[ezsasa]

I Donno what to say...

One lakh crore being spent on tax administration. That would mean spending 1 lakh crore to collect about 19 lakh crore.

On the bright side, budget in 2014 was 19 lakh crore, now it is 24 lakh crore. 5 lakh crore increase in 4 years.

 

[Willy3]

For all those complaining about nothing done for middle class - read this.

-----------------------------------------------------------------------------------------------------------------------------------------------

This government is the one which has actually given the most to the salaried middle class and we are planning to remove the same government.
I am not a very big fan of writing serious stuff related to debatable issues like Politics, Religion, Economy etc on Facebook as I believe that it is my personal space meant for sharing a few laughs and life updates with my friends and family. If at all, I ever talk about it, I always crack some joke related to it.

On 1st February 2018, Finance Minister presented the General Budget in the Parliament and I, like any other salaried middle class, was glued to the television just to listen to the point of my interest, that is, how much tax relief will be given to me this time. The announcement of tax rebate never came. Like all the salaried middle class, I got very angry and vowed not to vote for this government ever again. Slowly, but surely, my anger subsided and then I decided to look for any valid reason due to which they decided this. I had made up the mind to punish them in next elections if I could find that a grave Injustice had been done to me and hence, I did R&D on my own so that I don’t follow the herd mentality and make an informed choice. Since this information is very important, therefore I am sharing this with all of you here.

Most of us were expecting at least a tax slab raise to INR 3 lakh per annum from INR 2.5 Lakh per annum which means a saving of INR 2500 per annum

1. My home loan interest rate at the end of 2013 was between 9.5 to 11.25%. It has come down to under 8.5% now. (Keeping SBI as Reference) Even a difference of 2% Rate in a loan of 30 lakhs gives you savings of 45000 Annually, as per SBI Home loan calculator. Is that not for the middle class?
2. Average Consumer Price Index (CPI) was 10.92% in 2013 while it is 2.49% right now. JUST IMAGINE, what would have been the prices of the goods of common usage if such a high CPI rate was still there.
3. Fiscal Deficit was 4.1% in 2013 while it has been targeted to be 3.3% for 2018 (Through this budget only). If we don’t reign in the fiscal deficit, it will lead to manipulation of capital structures, interest rates will lead to a decrease of net exports and will result in even higher taxes and higher inflation. So, dear friends, the budget is also aimed at keeping the inflation in check (Such are the strange ways of Economics).
4. One thing which I can’t understand is the fuel prices. Petrol Price was INR 78.46 in Mumbai in 2013 while it is now 80.94. Same is the case with Diesel as it was INR 60.8 in 2013 and now it is INR 68.25. That too after Crude oil prices being lower as compared to 2013.
5. Let us now come to the moot point, that is, the Tax rebate for Salaried middle class. Big decisions like these can never be viewed in Silo. We also need to find out a pattern and if there is any rationale behind it. Most of us were expecting at least a tax slab raise to INR 3 lakh per annum from INR 2.5 Lakh per annum which means a saving of INR 2500 per annum as it, in any case, fetches a tax of 5% only to the Government or INR 208 per month. Is it such a big amount that our world will turn upside down?Remember, it is just INR 2500 savings for us but for the government, it is an extra spend of INR 2500 x 6.3 Crore = 15750 Crore. Is it a small amount? So, just for the sake of savings of 208 per month, Government would have to bear the brunt of 15750 Crore extra and remember, this would have been further added to fiscal deficit as explained above which in any case would come back to haunt you in the form of higher taxes and inflation.
6. Now, comes the most important point. Go through it and then decide your voting preference. From 2009 to 2014, the tax rebate ceiling was increased from 1.6 lakhs to 2 lakhs per annum. From 2014 till date, the ceiling has been increased from 2 lakh to 2.5 lakh. For senior citizens, it has been increased to 3 lakh and for very senior citizens, it has been increased to 5 lakh. Home loan deduction limit has been hiked to 2 Lakh. Also, don’t forget that from 2.5 lakh to 5 lakh income, you are now required to pay 5% tax instead of the earlier 10% and also, the standard deduction of INR 40000 has also come into the picture now. Stent prices were reduced to 35000 from 1.5 lakhs and knee replacement cost dropped down to 45000 from 1.5 lakhs. Insurance of 2 lakh Rs at Annual Premium of Rs 333 is also given by this Government. Are these not for the middle class? This government is the one which has actually given the most to the salaried middle class and we are planning to remove the same government to bring one which in any case will keep taking taxes from us and will keep filling its pocketsinstead of using the tax money properly?

It was the media and our own psyche that built up that expectation and not the government. They never gave any official indications or statements.

So, in a nutshell, this government has already given a lot to the middle-class honest taxpayers like me. I am already saving around 45000 Rs annually with a drop in home loan interest rate and still I am unhappy that an annual tax saving of Rs 2500 has not been given to me. Is it justified? Yes, they might be charging more as far as Fuel Prices are concerned but I still know, that all my tax money, whether it is in the form of Direct tax, or Indirect Tax, is not going into the pockets of Corrupt Politicians of the previous regime. Just because I got angry because I was expecting tax Rebate because this was the last full budget of the Government before general elections and hence, I was EXPECTING some doles for me, doesn’t mean that I will again throw my country into the same quagmire of corruption & red tapism that my country has been suffering since 1947. It was the media and our own psyche that built up that expectation and not the government. They never gave any official indications or statements.

~ https://www.pgurus.com/how-is-budget-2018-beneficial-for-the-middle-class/

Thanks ,but with goldfish memory do u think middle class even going to care about this budget in mid-2019 ?

 

[Flame Thrower]

I Donno what to say...

One lakh crore being spent on tax administration. That would mean spending 1 lakh crore to collect about 19 lakh crore.

On the bright side, budget in 2014 was 19 lakh crore, now it is 24 lakh crore. 5 lakh crore increase in 4 years.

I think environment for stronger IT compliance is being setup all these days.

If I am not wrong, then IT compliance might turn out to be trump card(only if it is played well)

http://www.financialexpress.com/mon...-i-t-dept-warns-these-taxpayers/1059929/lite/

 

[Indian Sniper.001]

Thanks ,but with goldfish memory do u think middle class even going to care about this budget in mid-2019 ?

No. They will change if some good policy decision is taken in the next few months.

 

[tharun]

I Donno what to say...

One lakh crore being spent on tax administration. That would mean spending 1 lakh crore to collect about 19 lakh crore.

On the bright side, budget in 2014 was 19 lakh crore, now it is 24 lakh crore. 5 lakh crore increase in 4 years.

Bro that's the compensation for the states revenue loss because of GST

Sent from my AO5510 using Tapatalk

 

[Anikastha]

No budget allocated for AP. BJP will be facing very tough challenge in 2k19. Many telugu people are talking -ve about Modi. Its do or die for him.

 

[Flame Thrower]

No budget allocated for AP. BJP will be facing very tough challenge in 2k19. Many telugu people are talking -ve about Modi. Its do or die for him.

Hi bro, let's not make fuss about that.

I am from Telengana, the stories I hear from my Vizag colleagues is that neither Congress nor YCP has enough strength to take on TDP.

Most of the MP seats in AP would go to TDP.

TDP is an ally for BJP, not in the hell TDP would go and support Congress against BJP.

KCR will be on the fence, he'll support if it benefits TS only.