01/02/2018
Key Highlights of Budget 2018
1. Tax Slab: No Change.
Payments exceeding Rs. 10,000 to trusts, institutions will be subject to tax for TDS compliance.
In case of non deduction of TDS for payments above Rs. 10,000 to trusts, 30% shall be taxed.
Non- corporate taxpayers to be charged Alternate Minimum Tax at 9% at par with MAT.
Proposal to tax LTCG exceeding Rs. 1 lakh at 10% without indexation.
Gains from equity share held upto 1 year will be taxed at 15%.
Proposal to introduce tax on distributed income by equity oriented mutual funds at 10 %.
New assessment scheme.
Existing 3% Education cess to be replaced by 4% Health and Education Cess.
E-Assessment to be rolled across the country to transform assessment procedure of IT department.
Custom Duty on Mobile phones to go up to 20% from 15%.
Custom Duty on parts and accessories of mobile and Tvs to be 15%.
Govt. to impose Social Welfare Surcharge at 10% of aggregate duties of Customs.
Proposal to abolish E.C & S.H.E.C on imported goods.
2. Deductions:
100% Deduction for farmer Producer Cos. with annual turnover of Rs. 100 crore.
30% deduction in addition to normal deduction of 100% in emoluments for new footwear employees and new leather industry staff.
Standard deduction of Rs. 40,000 for salaried tax payers in transport allowance, medical costs.
Incentives for senior citizens: Exemption of interest income on bank deposit raised to Rs. 50,000.
Incentives for senior citizens: Deduction benefit of Rs. 50,000 on medicare, insurance premium.
Proposal to exempt transfer of derivatives, certain securities by NRIs from Capital Gain Tax.
3. Funding:
R 3,794 crores to MSME Sector for giving credit support, Capital, interest subsidy, innovation.
Online Loans Sanctioning facility for MSME to be revamped for prompt decision making.
Proposed target of Rs. 3 lakhs crores for lending under MUDRA for 2018-19.
Refinancing policy, eligibility for MUDRA to be reviewed for better financing of NBFCs.
Measures to strengthen environment for growth of Venture Capital Funds, Angel Investors.
4. Employees:
Contribution of 8.33% of EPF for new employees by the Govt. for 3 years.
12% Govt. contribution to EPF in sectors employing large number of people.
Additional deduction to employees of 30% wages paid for new employees under IT Act.
National Apprenticeship Scheme for giving training to 50 lakhs youth by 2020.
Facility of fixed term employment to be extended to all sectors.
Govt. to contribute 12% of wages of new employees in EPF for all sectors for next 3 years.
Amendments in EPF & Miscellaneous Provisions Act.
5. Infrastructure:
NITI Ayog to initiate national programme to direct efforts in area of Artificial Intelligence.
Investments in robotics, AI, digital manufacturing, big data analysis.
Investments also in quantum communications and internet of things.
Dept. of science to launch Mission on Cyber Physical Systems.
Allocation for Digital India programme doubled to Rs. 3073 crore in 2018-19.
Broadband access to 20 crores rural Indians in 250,000 villages.
Proposal to set-up 5 lakhs wi-fi hotspots to give access to 5 crore rural citizens.
Rs. 10,000 crores for creation and augmentation of Telecom infrastructure.
Dept. of Telecom to support establishment of indigenous 5g Test Bed in IIT, Chennai.
6. Others:
Govt. to start monetizing select CPSE assets using INVITs from next year.
SEBI to consider mandating of 1/4th of financing needs of corporate from Bond markets.
Most regulators permit corporate bonds with ‘AA’ rating only as eligible for investments.
Time to move from ‘AA’ to ’A’ grade ratings for corporate bonds.
Govt. to establish unified authority for financial services in IFSCs in the country.
Crypto Currencies not legal tender or coin.
Measures to eliminate use of crypto-assets in financing illegitimate activities to be taken.
From December 2017 all class ‘M’ and ‘N’ vehicles being sold only with Fastags.
Govt. to bring in policy to introduce toll system on ‘pay as you use’ basis.
Expenditure on Infrastructure for 2018-19 to be increased to Rs. 5.97 lakhs crores.
FDI in defense liberalized.
C.B.E.C to be renamed as Central Board of Indirect Tax & Customs.
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