Budget 2019: Here's is what trade analysts expect

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New Delhi : India's Finance Minister Arun Jaitley will be addressing the interim Budget before the Elections 2019 on February 1. Recently, the investor community has become quite large. Now the big question is that will there be any good news for investors. Analysts mention that the financial savings as a percentage of total savings is closer to all-time highs and market participation has increased markedly. So, helping the investor community could be an important agenda for the government, suggest experts.

“Buoyant markets typically help the economy and definitely keep the mood upbeat for elections. While considering the recent challenges that the ruling party has faced with farmer distress any major cheer for the investor community seems unlikely but it cannot be ruled out altogether,” Naveen Kulkarni, Head of Research, Reliance Securities told Moneycontrol.

“Cuts in STT or changing the capital gains regime are likely to cheer the investor community without much impact on the government’s finances,” he said.

Here's what we can expect from the Interim Budget 2019:

Analyst AK Prabhakar, head of research at IDBI Capital says that rural and lower tax payer will enjoy huge benefits this year. Removal of STT for delivery trade or reduction in corporate tax or abolition of dividend distribution tax can cheer market all three would be best to happen.

Analyst Nikhil, co-founder of Zerodha expect that in budget 2019 things like farm loan waiver, relaxation in income tax slabs, etc. could play centerstage.

A rationalization or removal of STT has been on the list for many years now, and this is one change which could deeply benefit market participants across the board. A significant populous participating in the financial markets in India look to make a living by taking advantage of short term price discrepancies, they are burdened by this tax.

According to Analyst Abhijit Bhave, CEO of Karvy Private Wealth, Ayushman Bharat health insurance scheme may be given more teeth as the incumbent government is highly focussed on healthcare and making available of better medical facilities for the entire population of India.

Another change may be brought to ensure taxation parity between mutual funds and schemes of Insurance, by levying taxation on the policies like unit-linked plans (ULIPs).

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