Key Takeaways from Finance Act 2018

Finance Act 2018 - Takeaways - Taxscan

As the Government has notified the Finance Act 2018 which will be applicable from the very first day of the coming financial year, the following are some key takeaways from the Act.

Following are the key takeaways from finance bill 2018.

  1. The FMV (Fair Market Value) of unlisted shares on 31-January-2018 but listed during the date of transfer prior or after 1-April-2018 will be the indexed cost of Acquisition.
  2. The same also applies to those unlisted shares which are substituted in tax-neutral transfers (like amalgamation, demerger, gift, succession, etc) for shares which are listed on the date of transfer.
  3. There is no indexation benefit due to exchange rate fluctuation even in case of loss.
  4. The Finance Bill, 2018 proposes to restrict the scope of exemption under section 54EC of the Income Tax Act if bond issued on or before 1-April-2018 are redeemed within 5 years.
  5. Credit amount of any depositor in Public Provident Fund accounts not bounded under any law to recover the debt of depositor.

The bill containing tax proposals for the coming financial year was introduced by Union Finance Minister Arun Jaitley on 1st February. Earlier in March, the Finance Bill, 2018 has been passed by the Lok Sabha with twenty one amendments by applying the guillotine process.