Income Tax

  • No change in personal income tax slab rates.
  • Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses. 2.5 crore salaried employees and pensioners to benefit.
  • To promote employment, the government will contribute 12 per cent of wages of new employees in employee provident fund for all sectors for the next three years
  • Reduction in the contribution that new women employees make to the provident fund, from 12% to 8%,for the first three years of their employment, to promote women’s participation in the labor force as well as increase their take-home pay.
  • Proposal to extend reduced rate of 25 percent currently available for companies with turnover of less than 50 crore (in Financial Year 2015-16), to companies reporting turnover up to 250 crore in Financial Year 2016-17, to benefit micro, small and medium enterprises
  • Relief to Senior Citizens
  • Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000.
  • TDS not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
  • Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
  • Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.
  • Pradhan Mantri Vaya Vandana Yojana up to be extended till March, 2020. Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
  • Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered(exempted).
  • Short term capital tax remains at 15%
  • Cess on personal income tax and corporation tax to be increased to 4 % from present 3 %.
  • E-assessment to be rolled out across the country to almost eliminate person to person contact leading to greater efficiency and transparency in direct tax collection.

 

Customs Duties

 

  • Customs Duty on certain products, such as mobile phones and televisions has been increased, to boost more jobs creation and ‘Make in India’
  • Social welfare surcharge of 10% on imported goods.
  • Import of solar tempered glass for manufacture of solar cells exempted from customs duty.
  • Customs duty on crude edible vegetable oils like groundnut oil, safflower seed oil hiked from 12.5% to 30%; on refined edible vegetable oil from 20% to 35%
  • Customs duty on sunglasses, cigarette lighter, toys, bus and truck tyres, select furniture hiked.
  • Customs duty on imitation jewellery hiked from 15% to 20%; doubled on all watches to 20%.
  • Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%; duty on smart watches, wearable devices

 

Agriculture

 

  • MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19 from 8.5 lakh crore in 2014-15.
  • 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to protect the interests of 86% small and marginal farmers.
  • ‘Operation Greens’ launched to address price fluctuations in potato, tomato and onion for benefit of farmers and consumers.
  • Two New Funds of Rs10,000 crore announced for Fisheries and Animal Husbandary sectors; Re-structured National Bamboo Mission gets Rs.1290 crore.
  • 100 percent deduction proposed to companies registered as Farmer Producer Companies with an annual turnover upto Rs. 100 crore on profit derived from such activities, for five years from 2018-19.

 

Other Features

 

  • Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crore last year.
  • Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to lower and middle class in providing free LPG connections, electricity and toilets.
  • Outlay on health, education and social protection will be 1.38 lakh crore. Tribal students to get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs gets a boost.
  • World’s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit upto 5 lakh rupees for secondary and tertiary treatment.
  • Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.
  • 5.97 lakh crore allocation for infrastructure
  • Ten prominent sites to be developed as Iconic tourist destinations
  • NITI Aayog to initiate a national programme on Artificial Intelligence(AI)
  • Centres of excellence to be set up on robotics, AI, Internet of things etc
  • Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class
  • Deduction of 30 percent on emoluments paid to new employees Under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry, to create more employment.
  • No adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 percent of consideration.