UNION BUDGET-2018

Karan Garg
February 2, 2018

Arun Jaitley announced new UNION BUDGET 2018 on 1st of February, 2018.

DIRECT TAX PROPOSALS

(In Brief)

1. Tax exemption for farmer producer companies.

2. Real Estate: 50C/43CA: Hardship minimized 5% difference allowed.

3. MSME Tax reduced to 25% for companies TO up to 250 Cr.

4. No Change on Personal tax rates.

5. Salaried Tax payers: Standard Deduction: ₹40000/- in lieu of conveyance & medical.

6. Senior citizens FDs exempt from TDS up to 20000/-

7. 8% Assured Return under PM Vay Vandaba Scheme deposit up to 20 lacs.

8. Senior citizens FD interest exempt from TDS up to 50000/-

9. 80D: Senior citizens medi-claim up to Rs.50000.

10. 8% Assured Return under PM Vay Vandaba Scheme deposit up to 15 lacs.

11. LTCG tax above 1lacs @10%. gains up to 31st Jan grand fathered.

12. Cess increase to 4%.

13. DDT @ 10% introduced on MF dividend.

14. Now no exemption available in case of LTCG in case of sale of equity shares or equity oriented mutual fund.

15. Custom duty increase in case of import of parts of TV and mobile.

16. All Bill are increases due to increase of cess of 3-4%

17. No medical and conveyance allowed to salaried employees.

18. in case of section 50c now difference of 5% allowed on a difference b/w stamp duty and market value.

19. Suppose Mr. A has a salary of rupees 500000 now 40,000 standard deductions allowed and his total taxable income would be 460000.

20. Though fine print will have to be looked at later , one tax expert on CNBC TV is saying that “grandfathering ” means that whatever gains you have made till 31st Jan 2018 are exempt , and NAV/share price calculation on closing of 31st Jan 2018 rates has to be taken and future long term gains from today till on existing stocks / MFs /ESOPS will need to be paid.

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