HIGHLIGHTS OF BUDGET 2018-19 : NO CHANGE IN INCOME TAX SLABS, STANDARD DEDUCTION INTRODUCED FOR SALARIED

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Finance Minister Arun Jaitely has presented Budget for the financial year 2018-19. This session’s budget includes the Railway Budget. The present budget is to attract middle class but there is no sign in the budget where wooing the voters of 2019 elections is seen, still it largely focused on to strengthen agriculture, healthcare and education sector.

Here are some key highlights from budget 2018-19:-

  1. No change in personal income tax slabs while standard deduction up to Rs.40000 allowed for salaried tax payers in lieu of transport and medical reimbursement.
  2. For Senior citizens exemption in tax on interest income on bank deposits along with FD and post office deposits has been raised up to Rs.50000 per annum.
  3. Finance Minister has increased cess on Income Tax for education and healthcare from 3% to 4%.
  4. FM proposed to extend corporate tax to 25% over companies with turnover up to Rs.250 Crore from Rs.50 Crores to cover 99% of MSME Companies.
  5. The budget proposed 10% tax on Long Term Capital Gain (LPCG) exceeding Rs.1 lakh without indexing but is only for the equity based transactions.
  6. Custom duty on Mobiles phones and televisions has been increased to encourage make in India. Custom duty on mobile phone has been increased to 20% from 15%.
  7. Salaries of President, Vice President & Governors have been proposed to increase as per the following scale:
  • 5.0 Lakh for the President of India.
  • 4.0 Lakh for the Vice President of India.
  • 3.5 Lakh for Governors.
  1. It was proposed that the emoluments of Members of Parliament would be revised automatically after every five years subject to index of inflation.
  2. Finance Minister has announced Rs.150 Crore fund to celebrate 50th anniversary of Mahatma Gandhi.
  3. will set up 5 lakh WIFI hotspots in rural areas to provide faster and easy network access.
  4. Crypto currencies i.e. Bitcoin were declared as non legal tender and Govt. will took measures to eliminate use of these currencies which are subsidizing illegal transactions.
  5. will contribute 12 % as EPF in all sectors for the next three years for new employees while contributions for women new employees will be brought down from 12% to 8%.
  6. allocated fund of more than Rs. 1.48 trillion for Railways.
  7. The budget set a target of Rs.3 Lakh Crore for lending under Mudra Scheme.
  8. FM proposed for the development of 10 prominent tourists’ sites into iconic destinations.
  9. proposes to introduce tax on distributed income by equity oriented mutual fund at 10 %
  10. projected fiscal deficits of 3.3 of GDP for the next fiscal year.
  11. The govt. has raised Minimum Support Price for all crops at least 1.5 times that of the production cost.
  12. will provide 8 Crores LPG connections to poor women under Ujawalla Yojna.
  13. FM proposed to construct 2 crore toilets under Swath Bharat Mission.
  14. proposes largest Govt. funded health Scheme which will cover 10 crore poor families with a coverage of Rs.5.00 Lakhs per family/individual
  15. proposes to launch a National Bamboo Mission Fund with Rs.12000 Crores.
  16. will run programs to promote cluster based horticulture production.
  17. Amrut Programe will ensure water supply to households in 500 cities.
  18. The Petro and diesel prices will come down by Rs.2 due to cut in excise duty on petroleum products.
  19. FM said that the Government is slowly but steadily progressing towards Universal Health Coverage.
  20. 600 Crore allocated for Tuberculosis Patients and Rs. 500 per month for the treatment of TB patient.
  21. FM while concerning on Air pollution in Delhi-NCR has proposed a subsidized machinery to dispose off crop residue in Punjab, Haryana and Delhi.
  22. FM has allocated Rs.16000 Crores to provide electricity connection to 4 Crore poor households.
  23. Food Processing Sector is growing at 8% and fund for food processing is being doubled to Rs.1400 Crore.
  24. Women Self Help Groups SHG will be encouraged to take up organic farming.
  25. The FM has doubled the fund allocation to the Modi’s Digital India Program up to Rs. 3073 crore.
  26. Fixed Term Employment Scheme will be extended to all sectors.
  27. FM has allocated Rs.6000 crore fund to Textile Sectors.
  28. to established Railway University in Vadodara.
  29. FM proposed to initiate an integrated B-Ed programme for teachers and also proposes to Launch Revitalizing of Infrastructure and Systems of Education (RISE) with an investment of Rs.1,00,000 Crore.

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