Highlights of Union Budget 2018

Budget Overview

"Four years ago, we pledged to the people of the nation an honest government," the Finanace Minister began by saying. Jaitley stressed on the structural reform implemented by PM Narendra Modi that have enabled the government to positively transform India from being one of the fragile five.

Jaitley said the indirect tax system had been simpler, and the use of technology has enabled the government to increase the tax base.

Jaitley said India achieved an average 7.4% GDP growth in the last 3 years of the BJP government, in addition to the manufacturing sector being back on the growth path. Jaitley also said exports are expected to grow at 17% this fiscal.

He also said the government hopes the economy will grow at 7.2% to 7.4% in the second half of 2018-'19.

Jaitley said the Indian economy was on track to become the 5th largest in the world, while already being the 7th largest. Jaitley stressed on an often overlooked point that India is the third largest economy in purchasing power parity terms.

The Finance Minister also said that the focus would now switch from Ease of Doing Business to Ease of Living.

Tax

  • 85.51 lakh new tax payers filed income tax returns in FY17
  • 100% tax deduction is allowed to co-operative societies

Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17

  • Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post offices
  • Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D
  • Standard deduction of Rs 40,000 allowed for transport medical reimbursement for salaried tax payers
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
  • Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration
  • Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees
  • Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos
  • Rs 19,000 cr revenue loss on direct tax in last fiscal year
  • A tax on distributed income at 10%

Technology

  • Allocation to Digital India scheme doubled to Rs 3073 cr
  • 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of Rs 10,000 Cr.
  • Government will take measures to stop cryptocurrency circulation, as it is not considered legal tender
  • The govt does not consider cryptocurrencies as legal tender. The govt will explore use of blockchain technology proactively to usher in digital economy
  • National program to direct efforts in Artificial Intelligence

Health education social protection

  • Universal health coverage will be expanded after seeing the performance of the scheme
  • Aayushman Bharat programme: 1.5 lakh centres will be set up to provide health facilities closer to home. Rs 1,200 crore to be allocated for this programme
  • Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalisation. World's largest government-funded healthcare programme.

MSME

  • MSMEs are a major engine of growth and employment
  • MSMEs sector gets Rs 3,794 crore in the form of capital support and interest subsidy
  • Govt to revamp easy loan facilities for MSMEs by linking sanctioning of loan with GSTN
  • Global economy is transforming into digital economy
  • Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest subsidy By 2022, every block with more than - 50 per cent ST population will have Ekalvya schools at par with Navodaya Vidyalayas
  • Rs 3 lakh crore target has been set for the Mudra Yojana
  • Rs 4.6 lakh cr sanctioned under MUDRA Scheme

Companies

  • AADHAAR FOR CORPORATES? Govt will evolve a scheme to assign a Unique ID for cos
  • Disinvestment target of Rs 80,000 crore for FY19
  • National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed
  • Corporate tax rate of 25% extended to cos with turnover of up to Rs 250 crore for FY16-17
Leave a rating!
1.0 (0 votes)