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Middle-class sops came in Interim Budget, says Gaurav Mashruwala

The finance minister has also offered sops on affordable home loans

Gaurav Mashruwala  |  New Delhi 

Consumer loans may be the next big headache for NBFCs: RBI report

There weren't any major expectations from the Budget as the government had already made all the major tax proposals for individuals in the interim Budget.

There were, however, a few smaller announcements directly impacting the common man. In its disinvestment programme done through exchange-traded funds (ETFs), the government is planning to offer ETFs on the lines of equity-linked savings scheme (ELSS) to encourage long-term investment in central public sector enterprises. From the speech, it seems the investor will get tax benefit under Section 80C.

Gaurav Mashruwala, Sebi registered investment advisor

Gaurav Mashruwala, Sebi registered investment advisor

The section already has too many instruments. The finance minister has also offered sops on affordable home loans. The borrower will get an additional deduction of up to Rs 1.5 lakh on the interest portion of the loan taken to purchase an affordable home (valued Rs 45 lakh). Ideally, it should have been for more expensive houses because in metros, getting even a one-bedroom house is difficult in the prescribed limit.

One thing that would touch the lives of a common man is the payment ecosystem for transport based on National Common Mobility Card standards. It will enable one to use one card at multiple places, including metro services and toll tax, across India.

First Published: Fri, July 05 2019. 23:21 IST
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