If you are an investor, you'll probably find it difficult to put a label on this budget. It's not like the finance minister chose to maintain status-quo or did not introduce any 'cheer-worthy' measures. Sure he did, but those actions are few and not major (barring the move to hike the Income Tax exemption limit) ones.

Perhaps, it's the result of the political considerations or maybe it's just the strain of balancing 'reforms and relief.'

In this article, we focus on six provisions that matter:

1. Threshold limit of exemption for Income Tax increased

First, the move that will be universally received with cheers. The threshold limit of exemption from personal income tax for all assessees has been hiked to Rs 150,000. Simply put, henceforth, income up to Rs 150,000 will not be chargeable to tax.

There's more good news in store for senior citizens and women assessees. For senior citizens, the threshold limit has been increased from Rs 195,000 to Rs 225,000; in the case of women assessees, the limit stands hiked to Rs 180,000 from Rs 145,000 at present.

(The above example is for illustrative purpose only).

Some numbers will help us better appreciate the impact of this move. Let's take the case of an individual (say 30-Yr old male) whose net taxable income is Rs 500,000. Thanks to the aforementioned provision, his tax liability in the new regime will Rs 56,650 vis-�-vis Rs 101,970 (in financial year 2007-08) i.e. a saving of Rs 45,320.

2. Tax benefits on medical insurance hiked

Assessees who are paying medical insurance premium for their parents can now claim an additional deduction of Rs 15,000 under Section 80D. In other words, an individual who pays medical insurance premium for himself and his parents will be eligible to claim tax benefits to the extent of Rs 30,000 i.e. Rs 15,000 (for himself) and Rs 15,000 (for his parents).

3. Avenues eligible for Section 80C benefits widened

The FM announced that investments made in the Senior Citizens Savings Scheme and Post Office Time Deposits would be eligible for Section 80C benefits. Of course, the keyword here is 'announced'. This move has already been implemented, after a press release to that effect was issued by the Ministry of Finance in December 2007. Perhaps, the budget was chosen as a platform to communicate the same with a larger section of the investor community.

4. Clarifications for reverse mortgage

It was clarified that the revenue stream received by a senior citizen from a reverse mortgage would not be treated as income. Also, the reverse mortgage would not be treated as a transfer. The Income Tax Act would be amended to include the above provisions, which will certainly help the cause of senior citizens who have opted for a reverse mortgage.

5. Banking Cash Transaction Tax to be withdrawn

With effect from April 1, 2009, the Banking Cash Transaction Tax will be withdrawn. This move will find several takers, especially in quarters wherein it was believed that paying a tax to withdraw cash from one's bank account was unfair.

6. Tax rate on short-term capital gains increased

The tax rate on short-term capital gains has been hiked from 10% (at present) to 15%. This will be applicable to investments in equity shares listed on a recognised stock exchange in India and units of equity-oriented mutual funds, among other instruments, which are held for a period of less than 12 months. Transactions of the aforementioned variety will become less attractive for investors. Though popular opinion may differ, we believe this move (as any that furthers the cause of long-term investing) should be applauded.

In the final analysis, the budget may well be remembered as the one that was much hyped about, but didn't quite live up to expectations.

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