_3UHSDULQJ,QGLDIRUDORQJKDXO_ CA. Vijai Mantri Preparing India for long haul Union Budget 2015 is one of the few steps this Modi government has taken to achieve full potential of our great mother land. There are many provisions of the budget which you may have ready and understood. My attempt in this article is not to cover majority of the provision at superficial level but examined few in greater detail. Section 80 CCD ` 57 lacs and ` 133 lacs respectively. If the same amount of ` 50,000 get invested in MF then the accumulated corpus at the rate of 15% pa will become ` 222 lacs over 30 years and ` 907 lacs over 40 years period. A difference of 4 to 6 times. He will also learn to understand and handle volatility. This trend will encourage more investments from Indian investors in to equity and mutual fund products. Relaxation in EPF investments This new section in addition to section 80 CC will be a path breaking provision in the way Indian investors look at investments. Section 80 CC was very crowded section with items like PPF, EPF, NSC, Bank Deposits, Insurance Premium, Housing Loans, ELSS etc. There was no necessity to invest in an investment option where capital is not guaranteed and returns are market linked. Going forward if an investor wants to get additional tax benefit of ` 50,000 under section 80 CCD then they need to invest in investment options different from the way they historically used to invest. According to budget speech an employee can choose not to invest in EPFO scheme and may look at investing in pension plans which will give market linked returns. If an employee invest ` 1000 pm in EPF at 8% return than over 30 and 40 years the corpus will grow to ` 14.90 Lacs and ` 34.91 Lacs respectively. If the same ` 1000 get invested in pension product at 15% return than the same will grow to ` 141 Lacs over 30 years and ` 846 lacs over 40 years period. A difference of 10 to 20 times. This will make investor taste a market return linked product in which in long term he / she will gain much better returns. Currently ` 50,000 annual investment in PPF/EPF over 30 and 40 years period will accumulate to These two provisions will encourage more and more Indians to invest in market linked investment products and help them to create more wealthy and prosperous Indians. ¯128 | The Chamber's Journal | 0DUFK | 669, | SPECIAL STORY | Finance Bill, 2015 | Proposed regime to curb black Ratinalisation of corporate tax money structure The government has announced stiff punishment for Indian citizens hoarding money abroad. Also very encouraging was intent of policy makers in handling domestic black money. Uses of PAN card to settle bills of five star hotels in cash. Use of PAN card in purchase of more than ` 1 Lac. Reduction in corporate tax and rationalization of exemption will encourage many corporate to shift their bases to India. I see this as an attempt to give much needed fillip to GIFT as well. These legislations will make hiding income and evasion of paying taxes more and more difficult and expensive and will bring lots of funds in formal economy. This step itself will make India more transparent and clean. In place of headline grabbing big bang reforms this government chose more difficult but more important path of persistent, gradual and incremental reforms. Gold monetization Beside curbing demand for physical gold this scheme will discourage channeling large part of unaccounted gold. If a person has unaccounted gold then the same will not get him returns as he or she cannot monetize the same. GST implementation by April 2016 I think higher devolution to state on the recommendation of 14th Finance Commission is part of GST acceptance by states in addition to avowed promise of our PM to strengthen the federal structure of our polity. This in itself will help GDP expansion by 1% in addition to increase in tax compliance. Focus on governance Infra Push On the infrastructure there is a focused and decisive push. Beside this budget’s focus on road, railway budget also increased allocation to infra facility. Beside rail, port and railway the strategy of bidding out of ultra mega power project along with prior clearances is right way to ensure their success. Green job and green energy in form of an ambitious 175 Giga Watt renewable energy will have huge positive impact on environment. Modi, the man to deliver The budget is an effort in the direction of making Mr. Modi from a consummate politician to a visionary leader. Falling oil prices is a great luck for Indian economy and Mr. Modi as a PM is great fortune for our mother land! This world is nothing. It is at best only a hideous caricature, a shadow of the Reality. We must go to the Reality. Renunciation will take us to It. SS-VI-121 | The Chamber's Journal | 0DUFK| 129 ¯