Bugdet Talk - For Easy Understanding

National Saving Certificate
PRE BUDGET
Lock in :6 years
Tax impact at time of investment:Deduction u/s 80C up to Rs 1 lakh
Tax impact on interest/ dividend: :Taxed at your respective tax slab
Tax impact at time of investment:Tax free if withdrawn on maturity i.e. after 6 years POST BUDGET Same
Public Provident Fund
PRE BUDGET
Lock in :15 years
Tax impact at time of investment:Deduction u/s 80C up to Rs 70,000
Tax impact on interest/ dividend: :Tax free.
Tax impact at time of investment:Tax free if withdrawn after 6 years POST BUDGET Same
Employees Provident Fund
PRE BUDGET
Lock in :Till retirement
Tax impact at time of investment:Deduction u/s 80C up to Rs 70,000
Tax impact on interest/ dividend: :Tax free.
Tax impact at time of investment:Tax free if withdrawn on retirement POST BUDGET Same
Bank Fixed Deposits
PRE BUDGET
Lock in :5 years
Tax impact at time of investment:NIL
Tax impact on interest/ dividend: :Taxed at your respective tax slab
Tax impact at time of investment:No tax on withdrawal of principal on maturity POST BUDGET Deduction u/s 80C up to Rs 100,000 at the time of investment
Post Office Monthly Income Scheme
PRE BUDGET
Lock in :6 years
Tax impact at time of investment:NIL
Tax impact on interest/ dividend: :Taxed at your respective tax slab
Tax impact at time of investment:No tax on principal on maturity
POST BUDGET Same
Equity stocks
PRE BUDGET
Lock in :NILTax impact at time of investment:NIL
Tax impact on interest/ dividend: :Dividend tax free in hands of investors
Tax impact at time of investment:Short term capital gains tax @ 10%and Long term capital gains tax is nil
POST BUDGET Same
Equity Mutual Fund (other than ELSS)
PRE BUDGET
Lock in :NIL
Tax impact at time of investment:NIL
Tax impact on interest/ dividend: :Dividend tax free in hands of investors
Tax impact at time of investment:Short term capital gains tax @ 10% and Long term capital gains tax is nil
POST BUDGET Same
Close ended mutual funds
PRE BUDGET
Lock in :NILTax impact at time of investment:NIL
Tax impact on interest/ dividend: :Dividend taxed in hands of investor
Tax impact at time of investment:For equity refer equity mutual fundsand for debt refer, debt mutual funds
POST BUDGET Dividend tax free in hands of investor
ELSS
PRE BUDGET
Lock in :3 years
Tax impact at time of investment:Deduction u/s 80C up to Rs 1 lakh. Tax impact on interest/ dividend: :Dividend tax free in hands of investors
Tax impact at time of investment:Short term capital gains tax @ 10% and long term capital gains tax is nil
POST BUDGET Same
Debt fund/ balanced fund/ Monthly income plan
PRE BUDGET Lock in :NIL Tax impact at time of investment:NIL
Tax impact on interest/ dividend: :Dividend tax free in hands of investors
Tax impact at time of investment:Short term capital gains tax at your respective tax slab and long term capital gains tax is 20%
POST BUDGET Same
Pension policy
PRE BUDGET
Lock in :Minimum 5 years Tax impact at time of investment:Deduction u/s 80CCC up to Rs 10,000
Tax impact on interest/ dividend: :Annuities are taxed at your respective tax slab Tax impact at time of investment:1/3rd withdrawal is tax free
POST BUDGET Deduction u/s 80CCC up to Rs 100,000
Traditional Life Insurance Policy
PRE BUDGET
Lock in :Minimum 2 years
Tax impact at time of investment:Deduction u/s 80C up to Rs 1 lakh
Tax impact on interest/ dividend: :Bonus tax free
Tax impact at time of investment:Tax free if withdrawn after 2 yearsPOST BUDGET Same
ULIP
PRE BUDGET
Lock in :Minimum 2 years
Tax impact at time of investment:Deduction u/s 80C up to Rs 1 lakh
Tax impact on interest/ dividend: :NA
Tax impact at time of investment:Tax free if withdrawn after 2 yearsPOST BUDGET Same
Mediclaim
PRE BUDGET
Lock in :Not applicable
Tax impact at time of investment:Deduction u/s 80D up to Rs 10,000
Tax impact on interest/ dividend: :Not applicable
Tax impact at time of investment:Claim is tax free
POST BUDGET Same
RBI saving bonds
PRE BUDGET
Lock in :6 yearsTax impact at time of investment:NIL
Tax impact on interest/ dividend: :
Taxable Tax impact at time of investment:Taxable POST BUDGET Same
Senior citizens scheme
PRE BUDGET Lock in :5 yearsTax impact at time of investment:NIL
Tax impact on interest/ dividend: :Taxable
Tax impact at time of investment:Taxable POST BUDGET Same


What's Cheaper/Costlier/Same?

Technology
TVs same Set Top Boxes - 10.84% Up
Ipods same MP3 Player - 4.90% Down
Flat screen TVs same Laptops same
DVD Players Down Mobiles same
Digital Cameras same Computers - 8.13% Up

Household Appliances
Air Conditioners same Refrigerators same
Dish washing machine same Washing Machine same
Kitchen Glassware - 5.42% Down Microwave same
Kitchen Appliances same LPG Stoves <=Rs2000/unit - 5.3% Down

Food & Beverages
Fruits same Grains same
Poultry - 10.84% Down Edible oil - 6.32% Down
Biscuits - 5.30% Down Aerated Drinks(Mineral water) - 8.16% Down
Vegetables same Fish - 10.84% Down
Aerated Drinks(Soft Drinks) - 4.08% Down Pulses same Meat - 10.84% Down
Condensed Milk - 10.61% Down Beverages like tea and coffee Rs 1/Kg Down
Packaged Milk Products(Icecream) - 8.98% Down
Packed Foods - 5.80% Down

Fuel
LPG Down Kerosene Down
Petrol Down Diesel Down
Luxury Goods
Cigarettes Up Gold Jewelry same
Clothes and Fabrics Down Precious stones same
Cosmetics Down Leather Accessories same
Domestic ToiletriesDown Small Car - 8.16% Down

Miscellaneous
MedicinesDown Baby Care Products same
Writing Printing & Packaged Paper - 2.71% Down Software - 5.42% Up
Newspapers & Magazines same Man made fibre yarn - 5.42% Down
Books Down Real estate and property Up
Man made filament yarn - 5.42% Down Compact Florescent Lamps - 4.65% Down