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Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors

General highlights

Senior citizens have plenty of reasons to cheer post the Union Budget. One of the biggest is the increase in deduction limit under Section 80D of the Income Tax Act.

Section 80D limit hike

The Union Budget 2018 has given emphasis on strengthening the rural economy and boosting consumption. It ticks all the right boxes with its slew of benefits including higher minimum support prices (MSPs) for kharif crops, upgradation of rural haats to give farmers better access to formal mandis, enhancing the agricultural marketing infrastructure, and promoting organic farming.

Here are 14 ways in which Budget 2018 has come to the rescue of the rural economy:

<p dir="ltr"><span id="docs-internal-guid-767e76d0-7a98-7c43-b3c1-3ba81f701250">The long-term capital gains tax (LTCG tax) has made a comeback. Gains from the sale of equity shares and <a href="https://www.utimf.com/mutual-fund-products/equity-mutual-funds/">equity mutual funds</a> will now be taxed at 10%, if the total gains in a year exceed Rs. 1 lakh. Long Term Capital Gains from such investments below Rs. 1 lakh will not be taxed.

<p><strong>Question: </strong>How do you define Value?</p>

<p><strong>Answer:</strong> Value in my book is buying things for less than their intrinsic value. <strong>Intrinsic value</strong> is simply the current value of the cash flows that the company generates for its shareholders over time. Of course there could be situations where value could be unlocked by way of asset sales but those are by definition special situations and don&rsquo;t come by every day.</p>

Question: You have a preference for companies that generate healthy operating cashflow and free cash flow. Why do you emphasize this factor?

Question: How do you define value? Which are your preferred metrics of value?

<p style="text-align: justify;"><strong>Question: What does the word &#39;Value&#39; connote to you? Would say you are a contrarian as well? </strong></p>

<p style="text-align: justify;">&nbsp;</p>

<p style="text-align: justify;"><strong>Question: You select companies based on their &#39;competitive franchise. What metrics do you use to evaluate the &#39;franchise&#39;?</strong></p>