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Synopsis: Union Budget 2018-2019

Dr. Anand Wadadekar 
on 01 February 2018

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GENERAL:

Finance Minister says: (Partly in English and Hindi)

  • Indian economy is now 2.5 trillion dollar economy in the world and expected to become the fifth largest economy very soon.
  • We are not only focussing on 'Ease of Doing Business' but also 'Ease of Living'
  • Providing upto 5 lakh rupees per family per year for medical reimbursement, under National Health Protection Scheme. This will be world's largest health protection scheme
  • We have managed to get children to school but quality of education still a concern
  • Govt. to contribute 12% of EPF contribution for new employees in all sectors. Women contribution to EPF reduced to 8% for first 3 years of employment
  • The Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost
  • Allocation for SC welfare - Rs. 56,619 cr and Rs. 39,135 cr for ST welfare
  • Government to take all steps to eliminate use of crypto currencies which are being used to fund illegitimate transactions
  • Aadhaar goes Corporate - Govt will evolve a scheme to assign a Unique ID for companies too
  • Revised emoluments for President - Rs. 5 lakh, Vice President - Rs. 4 lakh and Governor - Rs. 3.5 lakh
  • National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed

Education:

  • To improve quality of teachers, Govt to launch integrated B.Ed programme. The govt aims to move from black board to digital board in schools by 2022
  • Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE - Revitalizing Infrastructure in School Education
  • Govt will identify 1000 B-Tech students each year and provide them means to pursue PHDs in IITs and IISc
  • One Govt. medical college to be ensured for every 3 parliamentary constituencies by upgrading 24 district-level colleges
  • By 2022, every block with more than 50% ST population and at least 20,000 tribal people will have 'Ekalavya' school at par with Navodaya Vidyalas

RAILWAY:

  • No change in railway fares

DIRECT TAX:

Individuals:

Tax Slabs remain unchanged as below:

Income up to Rs 2.5 lakh: NIL tax
Income between Rs 2.5 - 5 lakh: Tax at 5%
Income between 5 - 10 lakh: Tax at 20%
Income above Rs 10 lakh: Tax at 30%

  • Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses
  • Long-term capital gains exceeding Rs. 1 lakh to be taxed at the rate of 10%. Short term capital tax remains at 15%
  • For senior citizens, exemption of interest income on bank & post office deposits raised to Rs 50,000
  • Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D

Corporate:

  • 25% tax rate for companies having reported turnover of upto Rs. 250 crores
  • 100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above

INDIRECT TAX:

  • Education and health cess to be increased from 3% to 4%

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