Bonanza from the budget-- Lower Taxes-- "Holi" Day greetings ??

The  Finance Minister yesterday gave all tax payers a nice gift in the budget by changing the tax slabs. All people get a nice tidy income in their pocket. To look at how much you may get more in your pocket-- click here. This has gotten most people quite happy -- including me.

 But-- There always has to be a But!

We need to look at the budget holistically and see what are the other provisions which impact us and the overall impact on our pockets.

1. Fuel Increase as of yesterday- This will have a direct -ve impact on your pocket. One can easily calculate what the impact is going to be on post tax Rs with this increase.
2. Increase in Service taxes and Excise Duties: With fiscal prudence being the most important focus on the FM, the stimulus of lower excise duties and Service Taxes have been taken back. This means that we need to pay more for electronics, buying a house, cars and bikes -- everything.

We will need to understand what the impact is on our pocket post all of these things going up... one which you need to calculate.

Mostly the impact is going to be positive on your pocket-- so one now needs to think as to how we will be utilizing this bonanza that has been given to us... So how are you going to use this money--this additional funds that have been put into our pocket?

We must be careful that we do not waste our money and become more spendthrifts-- we should plan to use some part of this money ( a larger part hopefully) and invest in our future-- let it be retirement planning, Childrens planning or even paying off your home mortgage faster!!These are all opportunities which should not be wasted-- but used wisely.

Happy investing...