Simpler capital gains tax regime highlight of Budget

This Budget has a lot of provisions, but my focus is on some of the items I think will have a significant impact on the middle class.

- HARSH ROONGTA

The biggest positive I see is the continuity in the steps taken to reduce the misselling of insurance policies by the banks. The Economic Survey had identified this as a major risk factor. The goods and services tax (GST) department has done its bit by imposing hefty penalties on input credit claimed on expense invoices that were used to disguise the extra commission paid. The Insurance Regulatory and Development Authority (Irdai) has bought in special surrender value provisions that have reduced the incentive for misselling. Now, the Finance Bill proposes to disallow such expenses claimed by insurers that reduce their taxable profits. Hopefully, a reduction in misselling will follow from this barrage of steps. There are a number of steps taken that will leave more money in the hands of the taxpayers. These include the reduction in tax rates under the new tax regime (NTR), increase in standard deduction, allowing tax collected at source (TCS) to be adjusted against tax deducted at source (TDS) from salaries. Those who needed to pay advance tax (mainly businesspersons) already enjo