This could be the right time to get locked into fixed deposits (FDs), especially for risk-averse investors. With the Reserve Bank of India (RBI) cutting the repo rate by 25 basis points (bps) to 7.5 per cent, banks could follow suit and cut deposit rates.
The Budget focuses on boosting investments in infrastructure and kick-starting growth. Though not a big-bang Budget, it was a balanced exercise with the Street's focus now shifting to execution and results.
Pension Fund Regulatory Development Authority (PFRDA) has welcomed the additional Rs 50,000 tax exemption on National Pension Scheme (NPS) but regretted that the Budget ignored the demand for the EEE status for such investments.
The Budget has announced tax-free bonds for infrastructure projects. “The bonds will offer a good opportunity for those in the higher tax bracket,&" said Jayant Manglik, president – retail distribution, Religare Securities.