What the budget 2023 means for investing?

For many tax payers and especially salaried and small business owners, budget is only relevant from tax saving point of view. Traditionally most of the investments made by salaried individuals were primarily from the point of saving taxes. Thus life insurance premiums, ELSS etc were paid not for the returns these investments could generate but rather for the taxes that could be saved by investing in these instruments.

In that respect budget 2023 marks a clear turning point in this thinking. The government has introduced new tax regime for a few years now. But it is only in this budget that the tax slabs and the tax rates have been made more attractive for anyone wanting to do away with tax exemptions and opt for lower rates of taxes. The budget also clearly lays down a roadmap for eventual scrapping of old tax regime altogether and only keeping new tax regime for individual tax payers.

So what does this mean to tax payers and where and how should they invest their money going forward?

The biggest change in mindset that is needed going forward is in evaluating investments for their risk and return characteristics alone and not think of saving taxes as the primary motive for making those investments. Secondly, the taxpayers should now evaluate their individual circumstances and needs to choose their investment products and investment allocation to various asset classes.

We at Prudent Finvest have launched our online helpdesk through which individuals can get unbiased, comprehensive advice on any and all matters of personal finance. All you have to do is click on the helpdesk icon, fill the form on the page to request a free consulting session and we will set it up for you. All this from the comfort of your home and at no cost whatsoever.