Budget 2021 wishlist: A look at points FM Nirmala Sitharman may want to consider

Whenever I write about budget expectations, it is like asking Santa for goodies.

So, here’s my wishlist for Santa, oops Finance Minister:

– Increase the tenure for long term for equity and make it tax free. For equity to be long term, increase tenure to 3 years at least and make it tax free. More money will flow into equity, considering how Indians love to save tax. One of the reasons for insurance to get an upper hand is the fact that its not taxable. So, investors will be encouraged to stay invested in equity for longer tenures, which is good for businesses and the economy.

– Reduce the tenure for debt, to at least make it match real estate. The fact that debt should have longer tenure than real estate does not make sense, to me at least. The taxation is fine, but tenure for debt to be long term should be brought down to two years.

– We need to save more and what better motivation to save than saving taxes and thus the investment limit in 80C should be Rs 3 lakh. While various sections have been modified to higher limit for ex 80D, 80C hasn’t been modified to accommodate our higher retirement needs. So, increasing investment limit for 80C will motivate higher savings and investments. These can also be used to fund government projects. But let’s not complicate things and just ask for a higher 80C benefit to reflect the current times.

A three-point agenda to accommodate the current new normal and focus on our future. I am hoping I’m on the “nice” list and get at least some of these goodies I ask for!

(The writer is founder, Investography. Views are personal)