Home » News Updates » Snippet of Union Budget 2018 presented by Mr. FM

Budget 2018

Kishan, Common Man, Business and Development friendly Budget 2018 has been present by Finance Minister Mr. Arun Jaitley before Parliament today. Here we are presenting key highlights of the Union Budget 2018.

DIRECT TAX

  • No changes in personal income tax rates.
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers.
  • 100% tax deduction is allowed to co-operative societies.
  • Health and Education Cess will be increased to 4% from 3%.
  • Exemption of interest income for deposits in banks and post offices (including TDS) will be increased from Rs. 10,000 to Rs. 50,000 for senior citizens.
  • All senior citizens will now be able to claim benefit of a deduction of Rs. 50,000 for medical insurance u/s 80D. For critical illnesses, the deduction has been increased to Rs.1,00,000.
  • Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh.
  • LONG TERM CAPITAL GAINS ARISING FROM TRANSFER OF LISTED EQUITY SHARES EXCEEDING RS 1 L AKH WILL BE TAXED AT 10% WITHOUT INDEXING. HOWEVER, ALL GAINS UPTO 31ST JANUARY 2018 WILL BE GRANDFATHERED (i.e.EXEMPT FROM NEW PROVISION).
  • Short term capital gain tax remains at 15% for transfer of shares within 12 months.
  • TDS Provision and Cash payments provisions to be extended strictly over NGOs. – Amount disallowed due to non-deduction of TDS to be taxed @ 30% – Cash payments exceeding Rs. 10,000 to be disallowed and taxed @ 30%.
  • A tax on distributed income at 10%.
  • 10% DDT on equity-oriented mutual fund schemes.
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent from present 30%.
  • PAN to be used as Unique Entity Number for non- individuals from April 1.

INDIRECT TAX

  • Excise on unbranded diesel cut by 2 rupees to 6.33 rupee per ltr.
  • Excise on unbranded petrol cut by 2 rupees to 4.48 rupee per ltr.
  • Customs duty on perfumes, dental hygiene, after-shave, deodorants, room deodorizers and preparations for use on hair doubled to 20%.
  • Mobile phones set to become costlier as custom duty on them has been increased to 20 per cent.

Employees Related Proposal

  • Employees PF Act to be amended to reduce contribution of New Women Employee to 8 % from 12 % with no change in employer’s contribution which increase take home pay. (For First 3 Years).
  • Government to contribute 12 per cent of EPF contribution for new employees in all sectors for next 3 years.

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

Name
Email
Website