A.
DIRECT TAXES
INDIVIDUALS
/ HUF / AOP / BOI
Ø No change in income tax rates,
no increase in tax exemption Limit. Health and
education cess has been increased to 4 per cent from 3 percent.
Ø For senior citizens, exemption of interest income on bank
deposits raised to Rs 50,000.
Ø Senior citizens
can claim tax deduction of Rs 50,000 towards medical expenses.
Ø Standard deduction of Rs 40,000 towards
transport and medical allowance for salaried
employees in lieu of transport and medical expenses. This deduction is also
applicable for pensioners.
Ø No tax to be deducted under Section 194A from bank interest
up to Rs. 30,000 in case of senior citizens.
Ø Long
term capital gains exceeding Rs 1 lakh from sale of equities to be taxed at 10%
without allowing benefit of indexation if the share is sold after January 31,
2018. This amendment is applicable for all. Only partial exemption shall be
allowed.
Ø 5%
of the variance allowed in section 50C
while taking market value at the time of
sale of Property and calculating capital
gains.
CORPORATES,
INTERNATIONAL TRANSACTIONS / NRI / FOREIGN TAXATION OTHER PROVISIONS & OTHER
MAJOR ANNOUNCEMENTS:
Ø No change in Corporate Tax
rate. Health and education cess has been increased
to 4 per cent from 3 percent.
Ø Companies with turnover of up to Rs 250 crore to be taxed at
25 per cent.
Ø Benefit of reduced corporate tax
rate of 25% is extended to all those companies whose turnover is 250 crore or
less in the financial 2016-17
Ø Deduction
u/s 80JJA to extend to footwear and leather industry. NO of days of Employment
shall be reduced for apparel industry.
Ø
Electronic IT assessment will be
rolled out across the country.
Ø
Tax benefit to farmer producing
organisation similar to cooperative societies.
Ø
Tax benefits to MSME Sector.
B.
INDIRECT
TAXES:
Ø Mobile
phones set to become costlier as custom duty on them has been increased to 20
per cent.
Ø Customs duty on raw cashew cut from 5% to 2.5%.
Ø Now MSMEs having GSTIN will avail easy loan facility.
C.
ECONOMY
/ INVESTMENTS / EXPENDITURES / OTHERS / HIGHLIGHTS :
All the structural
reforms will help the Indian economy grow in the medium and long term.
Govt. decides to
take care health care protection to new level under AAYUSHMAN BHARAT. Providing
5 lakh rupees per family per year for medical reimbursement, under National
Health Protection Scheme. This will be
world's largest health protection scheme.
On purchasing power
parity basis we are already the 3rd largest economy.
Manufacturing
sector is back on growth path, services sector too has resumed its high growth
rate at 8%. Indian economy is on the course of achieving high growth of 8
%. Economy to grow at 7.2-7.5% in second half of 2018-19.
Our emphasis is on
generating higher income for farmers, and want to help farmers produce more
from the same parcel of land and realise higher prices for their produce,
Introduction of GST
has made indirect tax system simpler; demonetisation has reduced cash in
economy, promoted digital transactions.
Government is
committed to minimum support price of 150% of input price per farm.
The Minimum Support
Price (MSP) for all crops shall be increased to at least 1.5 times that of the
production cost.
Food processing
sector is growing at 8% per annum. Allocation of Rs 715 cr is being doubled to
Rs 1400 crores.
Rs 2000 crores has
also been allotted for building infra at agricultural mandis and farmer
markets.
Proposal to extend
kisan credit cards to fisheries.
Will work on
governments purchasing surplus solar electricity.
Setting up fishery
and aquaculture development fund and animal husbandry fund, with a total corpus
of Rs 10,000 crores.
Ujjwala scheme to
amplify targets, will now provide 8 crore rural women free LPG connections.
Air pollution in
Delhi-NCR has been a cause of concern, govt has proposed subsidised machinery
for in-situ management of crop residue in Punjab, Haryana, Uttar Pradesh and
NCT Delhi.
Govt of India will
take necessary measures to put in place measures for the state government to
purchase surplus solar power produced by local farmers at sutiable prices.
Proposal a sum of
Rs 500 crore for 'Operation Green' on the lines of 'Operation Flood'.
Ujjwala scheme to
amplify targets, will now provide 8 crore rural women free LPG connections
Institutional
credit to agriculture to be raised to Rs 11 lakh cr in 2018-19.
Eklavya
schools for tribal students. Committed to providing the best
education to tribal students in their own environment and the setting up of
Eklavya schools on par with Navodaya schools.
Target to provide
all Indians with their own homes by 2022.
Budget allocates
money for social security and protection programme for all widows and orphaned children.
Announcement of the
launch of Prime Minister's Research Fellows from this year.
Digital intensity
in education is required for moving from black board to digital board.
Proposed integrated
BEd programme for teachers. Training of teachers during service is
essential." Technology will be the biggest driver in improving the quality
of education. Lakhs of untrained teachers will be trained to help improve
quality of education. To tackle brain drain, scheme to identify bright students
pursuing B Tech in premiere engineering institutes, and providing them
higher-education opportunities in the IITs and IISc. These students will
receive handsome fellowships, and will be expected to dedicate a few hours to
teach in higher education institutions weekly.
Govt will set up
two new Schools of Planning and Architecture
Rs 16,000 cr to be
spent on providing electricity connection to 4 cr poor households.
The Government is
slowly but steadily progressing towards universal health coverage.
Government aims to
bring 60 crore bank accounts under the Jan Dhan Yojana.
Two new schools of
planning and architecture to be set up; 18 more in IITs and NIITs.
Govt will launch
health scheme to cover 10 crore poor families.
Two new schools of
planning and architecture to be set up; 18 more in IITs and NIITs.
Target of 3 lakh
crore for lending under PM Mudra Yojana.
Government to
contribute 12 per cent of EPF contribution for new employees in all sectors.
National Heritage
City Development Augmentation Scheme has been undertaken to preserve and
protect heritage cities in the country, announces the Finance Minister.
Rs 4.6 lakh cr
sanctioned under MUDRA scheme and the target for loan disbursement under this
scheme has been set at Rs 3 lakh crore for next fiscal.
70 lakh farming jobs
have been created this year, shows an independent study.
Women’s
contribution reduced to 8.33% towards PF in the first 3 years for new EPF
accounts.
Enhancing railway
capacity is major focus of Govt.; Major program initiated for maintenance,
safety, warning system and Fog safety of railways.
Employees PF
Act to be amended to reduce the contribution of women to 8 pc from 12 pc with
no change in employer's contribution.
Capital expenditure
of Rs 1,48,528 crore for Indian Railways in 2018-19.
4,000 km of new
railway track will be laid down by 2019.All railways stations with footfall more than 25,000 to have escalators.
The government will
undertake redevelopment of 600 major railway stations across the country.
10 prominent
tourist sites to be developed as iconic tourist spots.
The government will
boost the passenger handling capacity across India's airports by 5 times.
Airport capacity to
be hiked to handle 1 billion trips every year.
Similar to Aadhaar,
Individual enterprises too to have unique ID.
5 lakh WiFi
hotspots will be set up in rural areas to provide easy internet access.
Proposal for
revising emoluments - Rs 5 lakh for the President of India, -- Rs 4 lakh for
the Vice President, Rs 3.5 lakh for the
Governors.
Hike in allowances
of MPs in every 5 years on basis of inflation.
Govt. proposes to
amend RBI Act
Government does not
consider crypto-currency as legal; will take all measures against its illegal
use.
There is huge
increase in number of filing of ITR.
41% more return
have been filed by entities under presumptive tax scheme.
By Bikash Bogi
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