Union Budget 2018 19: Key Highlights

Background:

• Indian Economy expected to be 5^th largest in the world soon.


• FY 19 growth target between 7 to 7.25%.


• Organic farming exempt from tax.


• 42 mega food parks to be set up.


• Proposal to raise Rs.11 lakh crores for Institutional credit to farm sector.


• Special scheme to address pollution in Delhi/NCR.


• Focus on issues of poor and middle class.


• 4 crores households to be provided with electricity.


• Free gas connection to 8 crores women.


• Water management, Housing, Sanitation development focus areas.


• To implement comprehensive social security.


• Health Insurance of Rs.5 Lakh per family for 10 crores families.


• Health/Education sector outlay increased.


• Online loan sanctioning facilities for MSME will be relaunched.


• Railways capex at Rs.1.49 lakh crores (electrification, safety, etc.)


• SEBI to consider mandating large corporation to meet 1/4^th needs vide bonds.


• Smart city allocation for 99 cities increased.


• Amendments to stamp duty likely.


• To explore use of block chain technology.


• To take steps to eliminate use of cryp to currencies.


• Total infra spend estimated at Rs.5.79 lakh crores.


• New scheme for Aadhar for every businesses.


• Disinvestment target set at Rs.80000 crores.


• Government to formulate comprehensive gold policy.


• Salary structure of President/ Vice President/Governors revised after 10 years.


• To revise lawmakers salary after every 5 years.


• Central government to receive GST revenue for only 11 months.


• Fixed deficit target of 3.3% for 2018-19.


• Seeing short term non tax revenue for the FY 19.

Direct taxes:

• 85 lakh new taxpayers during last FY


• FY 18 Direct tax collection up 12.6%


• Anti tax evasion measures boosted Rs.90000 crores collection


• Proposed post harvest tax incentives.


• Corporate tax cut to 25% for MSME’s with turnover upto Rs.250 crores


• Relief to salaried tax payers.


• Eases rules on LTCG on realty.


• No changes in personal income tax structure for salaried employees.


• Standard deduction of Rs.40000/- in lieu of medical allowance/leave travel and reimbursement for salaried employees.


• Exemption on fixed deposits and recurring deposits on interest earning raised from Rs.10000/- to Rs.50000/- pa for senior citizen.


• Health insurance limit raised to Rs.50000/- for senior citizen.


• Critical illness health benefit raised to Rs.1 lakh for senior citizens.


• Long term capital gain tax at 10% without indexation benefit on listed securities exceeding Rs.1 lakh after 31.01.2018

Indirect Taxes:

• Increased custom duty on Mobile phones, TVs from 15% to 20%.