MUMBAI: The government took measures to facilitate ease of making investments by an individual as also of raising capital by companies. While retaining income tax rates, the finance minister raised the minimum exemption limit to `2.5 lakh from `2 lakh.
Finance Minister Arun Jaitley pushed for a single know-your-customer (KYC) for across the financial sector as also a single operating demat account for all financial transactions. This is aimed making it easier for an individual to make investments.
Likewise, the government proposed to increase deduction limit on interest on loan for purchase of a self-occupied property to `2 lakh from `1.5 lakh at present. The facility would enable more home seekers to be able to buy a house. The move will less the burden of rising housing prices as also interest burden on loans taken to buy a house.
Likewise, the government raised the annual ceiling for stacking away savings in Public Provident Fund to `1.5 lakh from `1 lakh. The move is expected to help those who want to save for the old age, as longevity increases.
Jaitley promised to do his bit for the senior citizens. He promised to examine how monies left by senior citizens for want of payment instructions can be used to protect their interests. A large amount of money is estimated to be lying unclaimed with PPF, post offices, and other saving schemes.
For companies, raising money to fund investments he proposed energizing the local corporate bonds market, liberalise raising of funds overseas in equity and debt.
Jaitley also promised to provide incentives for Real Estate Investment Trust (REIT) and proposed a modified REIT-kind of instrument that would pass through for taxation purpose. It would be a tax efficient instrument for real estate, PPP and other infra projects.