Budget 2020: Demand can be revived with more money in taxpayer's hands

Being a money manager, Mr Birani is concerned about demand side challenges, and asserts that the Finance Minister should focus on putting more money in the hands of the individual taxpayer, especially the middle class, so that spending increase.

He wants the Section 80 C limit to be raised from Rs 1.5 lakh to a higher amount. Regarding the buzz around Capital Gain Tax, Mr Birani believes that the two-year holding period for equities and the removal of long-term capital gains tax on their sale once this condition has been met will be a good move because it will prompt investors to have a long-term view on stocks. However, he feels it will be better if the minimum stipulated holding period is increased beyond three years.

Mr Birani says India could learn a few things from other countries from a budgetary point of view. He hopes the budget will introduce meaningful reforms in areas of social security, retirement and health, and cites the 401 K plan in the US, which he calls an excellent financial product, to substantiate his point. Mr Birani thinks NPS is a brilliant product, and could perhaps become popular like 401 K if it is properly incentivised.