Highlights of the Union Budget 2018

The Union Budget 2018 has been presented by the Finance Minister keeping the Ballot 2019 in mind and as expected the budget has been a populist budget budgetmostly focusing on the rural and agricultural sector. From Crypto-Currency to Custom Duty and from Agriculture to Awas Yojana almost every sectors have been touched by the Finance Minister in this Budget 2018.

Here are the few key points of the Union Budget 2018:

1.  Govt does not consider crypto-currency as legal; will take all measures against its illegal use. However, the Govt. is interested in encouraging Blockchain technology in payment systems.

2. Though there has been no change in the personal income tax rates, the educational cess has been increased to 4% from 3% making an additional hole in the pocket of the tax payers.

3. Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers.

4. For senior citizens, exemption of interest income on bank deposits has been raised to Rs 50,000.

5. 10 percent tax on long term capital gains in excess of Rs 1 lakh.

6. Tax on distributed income of equity oriented mutual funds at the rate of 10 percent.

7. Customs duty on mobile phones and TVs hiked to 20 per cent from 15 percent.

8. Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets.

9. 1 cr houses to be built under Pradhan Mantri Awas Yojana in rural areas.

10. Environment for venture capitalists and angel investors to be strengthened.

11. Contribution of 8.33% to EPF for new employees by the govt for three years and 12% govt contribution to EPF in sectors employing large number of people.

12. 99 cities selected for smart cities project with an outlay of Rs 2.04 lakh crore.

13. SEBI may ask large corporates to use bond market to finance one-fourth of their fund needs.

14. Corporate tax reduced by 25 percent extended to companies with turnover of Rs 250 cr to benefit small, micro and medium enterprises (MSME).

15. 372 specific business reform actions identified to improve ease of doing business; Evaluation of performance under this programme to be based on user feedback.

16. A major reform to regulate the salary of MPs has been announced. Law will provide automatic revision of emoluments of the MPs every 5 years indexed to inflation.

17. Rs 80,000 cr disinvestment target for 2018-19.

18. Govt will evolve a scheme to provide a unique ID to every enterprise on lines of Aadhaar.

19. Employees Provident Fund Act to be amended to reduce contribution of women to 8 percent from 12 percent with no change in employer’s contribution.

20. Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.


Leave a Reply

Your email address will not be published.