Budget Analysis for Investors: How to Efficiently Plan your Investments NOW for Maximum Benefit

Budget 2017 has proposed many important changes related to investments. Efficient Planning of your equity, debt as well as real estate investment could materially affect the investment returns. I have analyzed the effect of major changes proposed in the budget related to investments and is summarized as follows: 

•     Effective limit of income on which no tax is to be paid stayed the same as Rs. 300,000.
•     Reduction of tax burden of maximum of Rs. 12,500 due to reduction of slab rate (5% of Rs. 250,000).
•     Because of surcharge, additional tax burden of 10% of tax on persons earning 50 lakhs to 1 crore.
•     While there is reduction of 5% of corporate income tax to smaller companies.

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THE BENAMI TRANSACTIONS: Meaning, Analysis and Implications

After Demonetization, the next focus of Indian government to curb black money is Benami Properties. Because of relaxed provisions, informal ways of doing things until now, it became part of a normal business to do certain things in the name of tax planning or to circumvent the laws. As a result, it is entirely possible that a person would enter into a Benami Transaction without even realizing the same.

However, with increased compliance, government effort to curb black money and provision of mandatory rigorous imprisonment for guilty, it is extremely critical to understand the meaning and implications of a Benami Transaction.

The Benami Transactions (Prohibition) Amendment Act, 2016, which is an amendment of the older Benami Transactions (Prohibition) Act 1988 defines and regulates the Benami Properties/Transactions and is effective from November 1, 2016.

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