Budget 2020: New tax regime likely to boost income and purchasing power of people

Share India Securities Limited, a leading knowledge and technology-driven financial services group, has described many important steps introduced in the Union Budget 2020 as turning the deteriorating economy into a positive direction. The company in statement said that the new tax regime in this budget will help boost denizens Income and purchasing power.

Mr Ajay Patel, CEO, Share India Insurance Brokers said “We believe the union budget 2020 overall has tried to touch upon all facets impacting our economy, be it education, agriculture, MSME; IT among others, The  impact of new measures taken by the finance minister Nirmala Sitharman would be visible in the long term”

Here is the company’s take on few significant steps announced by FM.

1) The new tax regime would bring about a fresh perspective to personal income tax, while it may give more money in the hands of the individual, it would have to be seen whether this results into higher investment in Insurance and other long-term savings instruments.

2. The listing of LIC is a big move towards the disinvestment programme of the govt. The IPO could fetch a huge premium considering the small equity base which LIC has. The process though might not be easy as it would require amendment of the LIC Act first.

3. The abolition of DDT could attract investments but it being taxed at the hands of the individual is a dampener.

4. The increase of deposit Insurance to Rs 5 lac would definitely cheer the traditional investors and the decision has come at the apt time considering the plight of PMC bank customers.

5. The focus on doubling the farmer’s income with the 16-point action plan by the FM is a positive move towards the revival of the agriculture sector. Measures on 100 water stressed district would help the cause.

About Share India Securities Ltd (www.shareindia.com)

Share India Securities Ltd, a leading knowledge and technology driven financial services group, is engaged in the business of equity broking and trading activities for the last 25 years. It has now expanded its operation into mutual funds, NBFC, merchant banking, insurance and commodity markets. The Company became 200th SME Company to get listed on BSE SME Platform in October 2017. The Company in December 2019 migrated from BSE SME Platform to the main board of BSE Limited.

Share India has also completed the merger of Mumbai based Total Securities with the Company. Acquisition of Total Securities makes SISL among the top players nationally, enhances company’s geographical presence in all segments of Capital Market and brings experienced talent to the core team.

Recently the company has also set yet another milestone securing direct (Life & Non Life) license from Insurance Regulatory and Development Authority of India for its insurance arm Share India Insurance Brokers, which would operate its insurance distribution business in the country The Company aims for a premium collection of INR 500 crore in five years period.

The Company deliveredstrong growth in financial performance for the fiscal year ended March 31, 2019. The company’s consolidated revenue grew 30% on a year on year basis to Rs 182.53 crores compared to Rs 140.48 crores posted in FY18.  Similarly, consolidated net profit for FY19 rose 27% to Rs 19.45 crores compared to Rs 15.35 crores posted in FY18.