Key Highlights of Budget 2018: No Change in Income Tax Slabs

The Union Finance Minister presented his fifth Budget before the parliament today. The following are the major proposals from the Budget 2018.

• MSP for Agri Products @ 1.5% times market rate.
• No mention of Fuel Price.
• High allocation to boost banking Sector
• 5000 Crore for Operation Green to boost agriculture.
• Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME, and infrastructure sectors
• Favorable taxation treatment to Farmers.
• Special scheme for Air pollution.
• 8 crore new gas connection for poor women.
• 10000 Crs for Fisheries & Animal Husbandry sectors
• Right to Education Act to amend to provide adequate training for teachers.
• Housing for All by 2022.
• 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to protect the interests of 86% small and marginal farmers.
• National Health Protection Scheme to be introduced. World‟s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit upto 5 lakh rupees for secondary and tertiary treatment.
• Ayshman Bharat Project for Health Promotion.
• 60 Cr Bank a/c to bring under jan Dhan Yojana.
• 1.38 Lakh Crore for Health Protection, Education & Social Protection.
• 3794 Crores to MSMEs.
• 3 lakh Crore for Mudra Banks.
• 6 lakh Credit through Mudra Loans.
• 1290 Cr for National Bamboo Scheme.
• EPF Act to amend to reduce contribution of women employees.
• 7100 Crore for Textile sector.
• Paid maternity leave for 26 weeks.
• 5 Lakh Health cover per Family.
• Optimal electrification of railway Networks
• 48 lakh for Rail projects
• 3073 Cr for Digital India.
• Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crores last year.
• Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to lower and middle class in providing free LPG connections, electricity and toilets.
• Tribal students to get Ekalavya Residential School in each tribal block by 2022.
• Welfare fund for SCs gets a boost.
• Rs. 5.97 lakh crore allocation for infrastructure
• Bitcoins under IT Scanner.
• 5 Lakh Health cover per Family per year as medical reimbursement under National Health Protection Scheme.
• Enterprises in India to have a Unique ID.
• India exceeded Disinvestment Target. Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore.
• Growth rate of Direct taxes Increased.

Major Tax proposals

• FM Presents Tax proposals Now.
• Demonetization Impact: No. of Tax Payers Increased.
• Scheme to Improve Tax Compliance.
• 100 percent Tax Deduction to Co-oporative Societies.
• Deduction to New Employee u/s 80JJAA extended to Footwear and leather Industries.
• Incentives to MSME.
• Reduced Corporate Tax rate to Companies having Turnover up to 250 Crores
• Benefit to Women tax Payers.
• 40000 standard Deduction in lieu of basic Exemption for salaried class.
• Relief to Senior Citizens: Rs.50000 Deduction for Health Insurance Premium.
• Extra Benefit Tax Relief to Senior Citizens.
• No Change in Income Tax Slabs.
• Consideration on sale of securities upto 1 lakh under Long Term Capital Gain Tax.
• Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses.
• Customs Duty on Mobile Phones increased to 20% from 15%
• Health & education Cess Increased to 4%.
• Pre-Notice Consultation to reduce Tax Litigation.
• Gain from Equity taxable at 15%.
• Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.
• Tax on Long-Term Capital Gains exceeding Rs. 1 lakh at the rate of 10 percent, without allowing any indexation benefit
• Proposal to introduce tax on distributed income by equity-oriented mutual funds at the rate of 10 percent.
• Proposal to increase cess on personal income tax and corporation tax to 4 percent from present 3 percent.
• Proposal to roll out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency in direct tax collection.