Wealthfund Analysts desk – Key take away about Budget 2018

budget

Individuals and salaried class

Tax slab rates remain the same
Introduction of Standard deduction of Rs 40,000 for the salaried class
Education cess now to be called as Health and Education cess with effective rate increased to 4% from 3%
Introduction of tax on LTCG above Rs. 1 lakh on sale of equity shares @ 10%. Capital gain tax for until 31 January 2018 will be grandfathered

For Senior citizens

No Tax on interest from saving and Fixed Deposit of upto Rs 50,000
Exemption under Section 80D upto Rs 50,000 for medical insurance for senior citizens
Exemption limit for medical expenditure for certain critical illness raised from Rs 60,000/- and from Rs 80,000 in case of very senior citizens, to Rs 1 lakh, under section 80DDB

Other Major highlights of the budget

For companies with annual turnover of Rs 250 crore or less, corporate tax rate has been reduced to 25%
Revised fiscal deficit estimate for FY 2017-18 is Rs 5.95 lakh crore at 3.5% of GDP
Fiscal deficit for FY 2018-19 pegged at 3.3% of GDP
Divestment target pegged at Rs 80,000 crore for FY 2018-19. The government exceeded the target of Rs 72,500 crore for FY 2017-18 to achieve Rs 1 lakh crore
Rs 1.49 lakh crore earmarked as the capital expenditure for Indian Railways for FY 2018-19
10% tax will be levied on dividend distributed income by equity-oriented mutual funds.
Minimum support price (MSP) is kept at 1.5 times the cost of production for all upcoming Kharif crops
Rs 5.97 lakh crore for infrastructure in FY19 compared with Rs 4.94 lakh crore in the revised estimates of FY18
To launch a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families – aims to provide Rs 5 lakh per family per year for medical reimbursement

Budget 2018