Budget 2010: What's in for the investor

By now everyone knows that the two important features of this year's budget for the investor is a) the change in the tax structure and b) the additional Rs. 20,000 tax benefit you get if you invest in long term Infrastructure Bonds.

Regarding the first change, it will benefit only those who are earning more than Rs. 3 lakh per year. From Rs. 3 lakh onwards, you have a better saving rate than the previous year. For those who are interested in seeing it in figures, check this blog by Manish in JagoInvestor.

As for Infrastructure Bonds, I had a feeling it would make a comeback sooner than later and had thus included it in my book. It's not an exciting investment option per se, but combined with the tax benefit it can be a safe and attractive option.

Apart from that, there was a huge silence on most fronts. That there was nothing for Senior Citizens was a huge dissapointment. The rise in food prices and general inflation hits them really hard and they must have been looking for some relief. Which should all make us think. We all are going to retire someday and it is important that we are prepared to take care of our finances by investing when we have the time.

The other slight good news is the announcement about the government's contribution to the New Pension Scheme (NPS). The government is going to contribute around Rs. 100 crore for certain segments for a certain minimum investment. Hopefully that should create some noise and support for NPS. I was planning to include NPS in my book but it's a bit late - maybe I'll add it in the next version.

Will add more about the budget in the next blog. Till then.