FOR IMMEDIATE RELEASE: Jan 29, 2021.
EMBARGOED FOR: Jan 29, 2021.
INDIAN INVESTORS FEDERATION Issues Recommendation for Union Budget 2021.
NEW DELHI, 29 Jan 2021: With Budget 2021 being the first budget post COVID-19, the investor fraternity is earnestly looking forward to much-needed benefits from the government. Indian Investors Federation has highlighted that the Ministry of Finance should bring critical, wide-ranging measures in this Budget Session that would leave more money in the hands of investors.
INDIAN INVESTORS FEDERATION would like to bring to the attention of the Ministry of Finance critical issues impacting investors, ranging from TAXATION, SUPPORT FOR THE JOBLESS and MORTGAGE HOLDERS, to PROTECTING INVESTORS FROM NEW FINTECH PLAYERS.
“Still after 10 months there are a large number of unemployed people who earlier had been honest tax payers, or have been without a job for a substantially long period. In Union Budget 2021, the Government should come up with certain SOPs or rebates for such honest tax payers, so that their depleted savings are restored to a certain extent,” said Mr. Dalip Sharma, the Director General at INDIAN INVESTORS FEDERATION.
Taxes & Cess: It is expected that the Government would levy a health and education cess on the highest tax-paying investors to fund COVID vaccination costs. INDIAN INVESTORS FEDERATION is of the view that it may adversely impact India’s image and force wealthy Indians to move out of India. Rather, the Government should involve wealthy individuals and businesses to work out arrangements to create more jobs and provide support, which will have a long-term impact on the economy.
- LTCG, STT & Tax on Dividends: INDIAN INVESTORS FEDERATION is of the view that in LTCG there should be a higher rebate ceiling of INR 5,00,000 p.a. instead of the INR 1,00,000 currently in force. Many retirees and private-sector employees who are due to retire have their retirement portfolios structured around dividends. Thus, IIF recommends that the direct tax on dividends be waived for this fiscal, so that things get streamlined a bit.
- GST in Real Estate: IIF recommends that the government waive / remove GST on under-construction property for at least 2 years, which would not only give an immense boost to buyer sentiment but also provide a much-needed boost to the real estate / infrastructure sector.
Interest on Home Loan: IIF recommends extending the deadline to March 31, 2022 from the current March 31, 2021 for the deduction of interest paid on loans taken to buy a residential house whose stamp value did not exceed forty-five lakh rupees, where the tax payer did not own any other house on the date of sanctioning of the loan, as per the Finance (No. 2) Act, 2019.
Medical Expenditure & Medical Insurance: Medical costs and insurance premiums have increased exponentially in the recent past, more so due to the pandemic. The current deductions, ranging between INR 25,000 and INR 1,00,000, are still not sufficient. IIF strongly recommends that the deductions be doubled from current levels.
Regulations on FinTech Players: In the recent past we have seen many lending FinTech players resorting to high-handedness in loan recovery that has also resulted in many suicides. INDIAN INVESTORS FEDERATION is of the view that there is a pressing need to regulate these entities, so that the interests of small-time borrowers are safeguarded.
INDIAN INVESTORS FEDERATION is the leading Non-Profit Organisation that develops sustainable solutions to meet the emerging needs of the investor community. Indian Investors Federation (IIF) develops collective thought-leadership to strengthen the investment ecosystem. INDIAN INVESTORS FEDERATION provides a collective voice and representation on behalf of the investor’s community to the highest levels in financial institutions, regulatory bodies and government authorities in India and globally.
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FOR FURTHER INFORMATION, PLEASE CONTACT
INDIAN INVESTORS FEDERATION
Phone: +91 (11) 4562 4290
Email: info@indianinvestorsfederation.com