Budget 2018 - General Expectations

BUDGET EXPECTATIONS

Amid positive hopes from rating agencies, RBI and World Bank and Public Surveys, FM MR. Arun Jaitley will be giving his last full budget of present NDA Government. I expect this budget as pro-public and pro-rural India. Few general expectations from this budget are as under:

Individuals:

I expect that highest tax bracket should be 25% instead of 30% presently or increase in applicability limit of last tax bracket. Moreover, there is a need for relief to salaried class. It may be given by some of following initiatives:

1. Increasing the limit of investments in section 80C
2. Increasing mediclaim insurance limit under section 80D
3. Increasing limit of tax free interest income
4. Giving standard deduction
5. Extending depreciation benefit on cars to salaried class
6. Increase in exemption on housing loan interest

Apart from above, document requirement may be prescribed for claiming loss from house property. Limits of few allowances may be revised like education allowance, hostel allowance, conveyance allowance etc.

Corporates:

There may be reduction of tax rates to all the corporates by about 2%.

Moreover, presently 25% tax is applicable on a company with turnover of 50 Crores. This turnover limit may be increased to 100 Crores.

Crypto currency trade can be defined as speculative business or may be taxed on higher rate. Valuation rule may be given for this class of asset.

Cess and/or Surcharge may be reduced on corporates.

There can be new exemptions in respect of CSR and 'Swachh Bharat' initiatives of corporates.

Capital Gain:

There may be changes in LTCG taxation for stock market and real estate. Expecting a reduction in asset holding period in real estate investment trust from presently 3 years to 2 years. However, there may be increase in stock holding period to claim long term capital gain in stock market.

Expecting new regulations for stock trading in foreign stock exchanges.

Other Expectations:

Excise on Petro Products may be reduced in a move to bring these under GST umbrella.

Expect a reduction of duty on Gold and other precious metals.

Budget focus may be on Agriculture, Rural India, FMCG, Real Estate, Public Infrastructure, Defence, and Textile Sector.

Please write your queries from this article or expectations from this budget in the comments section.