Though you have received enough news on the pre and post event of Budget i would like to touch upon the key relevant points.

This Budget is first in many things. Be it the date of presentation, merging of Rail and union budget into one etc.

Budget sticks on the path of its fiscal prudence(its borrowing) while providing adequate thrust to key economic sectors like agriculture,infrastructure etc. and maintaining focus on the bottom of the pyramid of society.

Contrary to expectations it does not announce any populist measures due to forthcoming state elections.

Key Direct Tax Changes:

Personal income tax rate at lowest slab reduced to 5% from 10%. Incremental benefit in disposable income of up to Rs 12,500 for individuals earning up to Rs 50 lac.-To increase disposal income to middle and upper middle class.

10% surcharge levied for individuals with income between Rs 50 lac to Rs 1 crore – may impact demand for high ticket size spends.

LTCG holding period for immovable property (Real Estate) reduced to 2 years from 3 years.

Cash transaction above Rs 3 lakhs is not permitted.

What Matters Most:

The investment objective of many of you is to ensure enough money is available at the time of one’s financial goals. To achieve the same one must stick to their pre- defined asset allocation and stay on the course irrespective of the short term events like Budget, RBI policy or elections because at best they have only sentimental value. What really matter for long term investors is earnings, which is the real driver for the returns from the market.

Do let me know in case of any further information.

,”Volatility scares enough people out of the market to generate superior returns for those who stay in- Wharton prof Jeremy Siegel