Key Highlights from Union Budget 2018

This is the first budget after big-economic reforms like the Goods and Services Tax, Demonetisation, dynamic fuel pricing, etc.

• Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17
• No Change In Tax Slabs For Individuals.
• 100% deduction of income for Producer Companies.
• Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers
• Exemption on interest on fixed deposit for senior citizens increased to Rs.50,000/-, not TDS has to be done on such income by the financial institutions.
• 80D deduction for Senior Citizen increased to Rs.50,000/-.
• Education cess increased to 4% from 3%
• 2 New Planning & Architectural School and 18 inclusive Planning & Architectural School in IITs & NITs.
• National Health Protection Schemes cover enhanced to Rs. 5 Lakhs.
• Online loan sanctioning process for MSMEs and Bill Discounting finance by leveraging GSTN.
• Special taxation structure for Venture Capital Funds and Angel Investors.
• For first three years of women employee, EPF contribution is reduced to 8%, Employer Contribution to remain same.
• Reforms will be done in Stamp Duty Laws for Stamp Duty on securities.
• Crypto currencies are not legal in India.
• Unique ID will be issued to each enterprise in the same manner as Aadhar Number issued to each individual.
• New India Assurance Company Ltd., United India Insurance Co. Ltd., National Insurance Co. Ltd., and Oriental Insurance Co. Ltd. will be merged in one company and will be listed on stock exchange.
• Presumptive taxation for Business Rs.2 Crore and for Professionals with turnover less than Rs.50 Lakhs
• In case of real estate transaction, if the shortfall in circle rate is not more than consideration amount, circle rate can be considered for calculating LTCG.
• Medical expenses deduction for senior citizens increased to Rs.1,00,000/-.
• Exemption from LTCG to non-resident trading in IIFC and reduced Alternative Minimum Tax of 15% to resident trading in IIFC.
• LTCG above Rs.1,00,000/- after 31st January 2018 shall be taxed at 10% without indexation benefit.
• Dividend received from ELSS and Dividend fund will be taxed at 15%.
• Custom duty on Mobile Phone increased to 20%.
• Central Board of Excise and Customs to be renamed as Central Board of Direct Taxes and Customs.

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