INDIA
BUDGET 2018 –
Highlights
For Salaried Class:
1.
Standard deduction of
Rs.40,000/- to replace Transport Allowance of Rs.1,600 p.m. and medical
reimbursement of Rs.15,000 p.a.
For Businesses:
1.
Rate of Tax reduced to 25% for
Domestic Companies having turnover upto Rs.250 crores (earlier upto 50 crores).
2.
Dividend distribution tax
payable @ 30% on deemed dividend.
For Senior Citizens:
1.
Mediclaim deduction allowed
upto Rs.50,000/-
2.
Interest income from Banks,
Co-Operative Banks and Post Office exmpt upto Rs.50,000/-
3.
No TDS upto interest income of
Rs.50,000/-.
For Women:
1.
Increased take-home pay for
first 3 years of employment where employee contribution to PF will be
restricted to 8%, with no change in employer contribution.
For NRIs:
1.
Capital Asset being Bonds or
GDRs, Rupee Bonds of Indian Cos, Derivatives, exempt from tax if sold on
recognized stock exchanges in International Financial Services Centre (IFSC),
in foreign currency.
General:
1.
No change in the tax slabs.
2.
Education Cess of 2% and
Secondary & Higher Education Cess of 1%, makes way to Health &
Education Cess of 4%.
3.
STT paid Long term Capital
Gains no more exempt under section 10.
To be taxed @ 10% in excess of Rs. 1 lakh.
4.
Sale consideration to be
considered as adequate if Stamp Duty Value of property is within 105% of the
same.
5.
Investment options to avoid
capital gains tax available to gains out of Land & Building only.
Holding period of such investments
raised from 3 years to 5 years.
6.
7.75% GOI Savings (Taxable)
Bonds, 2018 replaces 8% Savings (Taxable) Bonds, 2003.
7.
Social Welfare Surcharge @ 10%
of all taxes on goods imported in Schedule I to Customs Tariff.
8.
Road & Infrastructure Cess
@ Rs.8 per litre on petrol and high speed diesel oil, in addition to customs
and excise duty, will not impact prices as existing duties slashed.
Some Missed Targets:
A CORPORATE TAXATION:
The basic rate of Corporate Tax in
India at 30% is higher than the rates prevalent in the other major Asian
economies, making our domestic industry uncompetitive. … I, therefore, propose
to reduce the rate of Corporate Tax from 30% to 25% over the next 4 years. Hon’ble Finance Minister Shri Arun Jaitley
in his Budget Speech of 28 Feb. 2015.
Towards
fulfilment of my promise to reduce corporate tax rate in a phased manner, I now
propose to extend the benefit of this reduced rate of 25% also to companies who
have reported turnover up to `250 crore in the financial year 2016-17. This will
benefit the entire class of micro, small and medium enterprises which accounts
for almost 99% of companies
filing their tax returns. Hon’ble Finance Minister Shri Arun
Jaitley in his Budget Speech of 1 Feb. 2018.
B GDP:
Based on the new series, estimated GDP growth
for 2014-15 is 7.4%. Growth in 2015-16
is expected to be between 8 to 8.5%. Aiming for a double-digit rate seems
feasible very soon. Hon’ble Finance Minister Shri
Arun Jaitley in his Budget Speech of 28 Feb. 2015.
IMF, in its latest Update, has forecast that India will grow at 7.4% next year. Hon’ble
Finance Minister Shri Arun Jaitley in his Budget Speech of 1 Feb. 2018.
C Fiscal Deficit:
I will complete the journey to a fiscal deficit
of 3% in 3 years, rather than the two years envisaged previously. Thus, for the next three years, my targets
are: 3.9%, for 2015-16; 3.5% for 2016-17; and, 3.0% for 2017-18. Hon’ble Finance
Minister Shri Arun Jaitley in his Budget Speech of 28 Feb. 2015.
Revised Fiscal Deficit estimates for 2017-18 are `5.95 lakh crore at 3.5% of GDP.
I am projecting a Fiscal Deficit of 3.3% of GDP for the year 2018-19.
Hon’ble Finance Minister Shri Arun Jaitley in his Budget Speech of
1 Feb. 2018.
Promises
Delivered:
A INFLATION:
To ensure that our victory over inflation is
institutionalized and hence continues, we have concluded a Monetary Policy
Framework Agreement with the RBI, as I had promised in my Budget Speech for
2014-15. This Framework clearly states
the objective of keeping inflation below 6%. Hon’ble
Finance Minister Shri Arun Jaitley in his Budget Speech of 28 Feb. 2015.
B IMPLEMENTATION OF GST
Total Revised Estimates for expenditure in 2017-18 are `21.57 lakh crore (net of GST compensation transfers to the States) as against the Budget Estimates of `21.47 lakh crore. Hon’ble Finance Minister Shri Arun
Jaitley in his Budget Speech of 1 Feb. 2018.
ROAD
AHEAD:
A ‘Housing for all’
by 2022
B Each house in the country should have basic
facilities of 24-hour power supply, clean drinking water, a toilet, and be
connected to a road.
C Electrification, by
2020
JAI HIND
