Now Is The Right Time To Invest

The Indian demography shows that every year a fleet of new tax payers join in the brigade. Much more than a mere figure, it reflects India’s youth empowerment. It highlights that in a country where only 2.7% of the population pays their income tax, times are improving: a manager at Private Equity firm in India puts forward an optimistic approach.

However, he agrees that still putting high-net-worth investments in mainstream is a far-fetched dream. Though, the nation’s economy is on an upward journey yet majority lies beyond the minimum taxation limit. And the FM’s report tells us that most of the tax burden is born by the salary class. So, evidently, the honest taxpayer can’t spare much for long-term high-risk investment ventures such as private equity funding and REIT’s. In fact, savings and investment even at a small scale is not really a priority, which is again neither good for individual growth nor the economy.

So, it is imperative to educate the young of the importance of early investments. Even if made in purview of tax saving, a small saving can be a good start. 

And the time is just right! Recently, both houses of the parliament have cleared the Finance Bill 2014 which changes the taxation structure and exemption rules, says a private equity and general investment portfolio manager. With proper investment portfolios at hand, now you can considerably increase your take-home. And what more, with five months of tax instalments already gone, you may even be entitled to an ITR. 

In light of the new laws, most employers have already asked their employees to submit a reassessment of their savings. If your firm is not already doing it for you, you can ask the accounts department. It also gives you a chance to increase your savings and save on tax.
So, it is a win-win deal. You increase your savings, enjoy interests and save your tax.