Highlights Of Budget 2018-19
The Union Minister heading Finance and Corporate Affairs Mr Arun Jaitley while presenting the General Budget 2018-19 in Parliament on 1st Feb 2018 said‘the Indian society had politically and economically shown remarkable resilience in adjusting with the structural reforms introduced by us in the last few years. Seeking to developing status of Indian economy IMF, in its latest Update, had forecasted that India will grow at 7.4% next year in the backdrop of services resuming high growth rates of 8% plus, the overall exports of the country are expected to grow at 15% in 2017-18. It is also being said that the manufacturing sector will be the coming sector to pick a favourable growth rate.’
Presenting the vision of a developed nation, the proposed budget was guided to strengthen cornered sectors of the economy being agriculture sector, rural development, health, education, employment, MSME and infrastructure sectors.
Here is the list of key announcements made by the Finance Minister, Mr Arun Jaitley revealing major policies for the coming year in the Budget 2018 -19:
- 100% deduction was proposed to companies registered as Farmer Producer Companies with an annual turnover up to Rs. 100 Crore on profits derived from such activities, for five years from 2018-19.
- Deduction of 30% on emoluments paid to new employees under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry leading to a generation of more employment opportunities.
- No adjustments would be made in respect of transactions in immovable property where Circle Rate value does not exceed 5% of consideration.
- It was proposed to extend the reduced rate of 25% currently available for companies with a turnover of less than 50 Crore (in FY 2015-16), to companies reporting turnover up to Rs. 250 Crore in FY 2016-17, with a view to benefit micro, small and medium enterprises.
- To benefit approx 2.5 Crore salaried employees and pensioner’s, a standard deduction of Rs. 40,000has have been placed in an exemption for transport allowance and reimbursement of miscellaneous medical expenses.
- To control cash economy, payments exceeding Rs. 10,000 made in cash by trusts and institutions to be disallowed and would be subject to tax.
- Tax on LTCG exceeding Rs. 1 lakh is proposed to be considered at a rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January 2018 will be exempted.
- It was proposed to introduce tax on distributed income by equity-oriented mutual funds at the rate of 10%.
- It was proposed to increase cess on personal income tax and corporate tax to 4% from current rate of 3%.
- Proposal to roll-out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency indirect tax collection.
- Proposed changes in customs duty to promote the creation of more jobs in the country and also to incentivize domestic value addition and initiate benefits of ‘Make in India’ to domestic sectors such as food processing, electronics, auto components, footwear and furniture.
- It was proposed to allocate 5.97 Lakh Crore for infrastructure.
- Institutional Farm Credit raised to 11 lakh Crore in 2018-19 from 8.5 lakh Crore in 2014-15.
The Budget 2018 -19 Also Proposed The Following Reliefs To Senior Citizens Of The Country
- Exemption of interest income on saving bank deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000 under section 80TTA.
- TDS not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
- Hike in deduction limit for health insurance premium and/or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
- Increase in deduction limit for medical expenses for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of super senior citizens) to Rs. 1 lakh for all senior citizens under section 80DDB.
- Proposed to extend Pradhan Mantri Vaya Vandana Yojna up to March 2020. Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.