Retired? Here is what Budget 2012 may have to offer

It is proposed in the Direct Code Tax or DTC that the annuity part of the pension be made tax free. The pension product has two phases one being the accumulation phase and the other being the annuity phase.

Removal of taxation on annuity part of pension plans will have a great impact on the surplus funds available with the individuals invested in pension plans. The union budget is not in our hands but what is in our hands is the way in which we deal with it.

So the first thing which a household needs to do is to have its own budget in place. The problem is not about the fixed and definite expenses but the variable which actually makes all the difference.

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