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New Vision: Ease of Living

Elections are around the corner, Finance Minister Arun Jaitley started the budget 2018-19 speech by stating plethora of achievements of MODI Government and the reforms bought in the 4 years which includes a long list such as Make in India , Growth of MSMEs, Digital India, demonetisation, GST, RERA, Ease of doing business and much more.

The Budget 2018-19 emphasized mainly on rural upliftment, Healthcare, education, infrastructure and women development. F.M. also stated that the Government is completely aware about the difficulties faced by people living in poverty. Considering the same- Gas connections, health care facility to people including people suffering from T.B and other diseases are given abutment. Allocation to higher education also increased to nearly 10 times. “Swach Bharat Abhiyan” which was a big concern for the MODI Govt still remained in focus. Pollution problem in Delhi NCR region was also not ignored by the F.M. Corporate tax came to a level of 25 percent. Reform in availing loan facility by MSMEs, Support to Startups and also the concept of ease of doing business were mentioned in the speech.

Keeping in view all of the above, If we look at the facts, “Ease of living” does not seem as a mere statement but it is a vision which seems achievable.

Taxation

• Long term capital gains exceeding Rs 1 lakh from sale of equities to be taxed at 10% without allowing benefit of indexation if the share is sold after January 31, 2018. This amendment is applicable for all. Only partial exemption shall be allowed. Short-term capital gains tax continues to be 15%
• Capital gains made on shares until Jan 31, 2018 grandfathered
• Customs duties hiked on mobiles to 20 percent from 15 percent; on TVs to 15 percent to boost domestic manufacturing.
• 6 Crore toilets have been built so far under the Swachh Bharat campaign. The target for the next financial year is to build another 2 Crore toilets.
• No change in personal income tax structure, says Arun Jaitley
• Standard deduction of Rs 40,000 for salaried taxpayers, says Arun Jaitley
• Status quo for salaried class, says Arun Jaitley
• 25% Corp tax rate extended to companies with turnover up to Rs 250 Cr.
• FM says Rs 90,000 Cr. extra collected as personal Income Tax in last 1 year will continue with tax policies that reward honest tax payers.
• FM Arun Jaitley says propose to allow 100% tax deduction to companies registered as farmer-producer companies with a turnover of Rs 100 Crore.

Agriculture

• India produced over 275 million tons of food grain and 300 million tons of fruits and vegetables in 2016- 17.
• Crop production at record high; government is committed to giving 50% more than cost of crop production to farmers.
• Government to set MSP at one-and-half times the cost of production for Kharif crops.
• Government will ensure farmers get MSP if prices fall; Niti Aayog will discuss with state governments for mechanism to ensure farmers get better prices.
• Rs 2,000 Crore fund to be set up for upgrading rural agriculture markets.
• Government has promoted organic farmers in a big way; women self-help groups to be encouraged to take up organic farming.
• Food processing sector growing at 8 pc; allocation for food processing ministry being doubled to Rs1400 cr.
• India’s agriculture export potential is $100 billion as against current $30 billion exports, says FM.

For additional information on reforms, taxation, and contact information, access the Union Budget via link below:

Union Budget 2018-19

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