Budget#2018 In shorts
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Direct Taxes
- No personal income tax changes proposed in budget.
- Corporate tax of 25% extended to companies with turnover up to Rs. 250 crore in financial year 2016-17.
- 100% tax deduction is allowed to co-operative societies
- Incentives for senior citizens: Exemptions in income of Rs. 10,000 from bank FD and post office FD.
- Senior citizens to get Rs. 50,000 per annum exemption for medical insurance under sec 80D.
- Standard deduction of Rs. 40,000 allowed for salaried tax payers. The standard deduction is in lieu of travel and medical expense reimbursement, which amounts to Rs 30,000. So the actual tax benefit would be Rs.10,000 for each taxpayer.
- Long term capital gains exceeding Rs. 1 lakh for equities and equity oriented mutual funds will be taxed at 10% without indexing.
- Tax on distributed income of equity oriented mutual funds at the rate of 10 per cent announced.
- Education cess increased to 4% from 3% in the name of health care cess.
- Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.
- Sec. 40(a)(ia) to extend to Trusts and Institutions also.
- New scheme for providing electronic assessment to eliminate person-to-person contact
Indirect Taxes
- Customs duty on certain products, such as mobile phones and televisions has been increased, to provide a fillip to 'make in india'
- Social welfare surcharge of 10% on imported goods.
The author is an associate member of the Institute of Chartered Accountants of India and a practising Chartered Accountant based in Papanasam and can be reached at vijaysarathisha@gmail.com.
- : The contents of this document are solely for informational purpose. It does not constitute any professional advice or a formal recommendation. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document or for any actions taken in reliance thereon. No part of this document should be distributed or copied without express written permission of the author.
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