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Initial observations on the Union Budget proposals presented by Mr. Arun Jaitly, Hon’ble Union Minister for Finance Govt. of India

UNION BUDGET 2018-19

 

Hon'ble Finance Minister of India Shri. Arun Jaitley presented the Union Budget  for the year 2018-19 in Parliament. In his Budget speech Mr. Arun Jaitley said that "manufacturing sector is back on growth path and  services sector too has resumed its high growth rate at 8%. The initial observations on the Union Budget is furnished as hereunder:-

 

 Looking into the impact of  Union Budget for the year 2018-19 on Indian Pulp and Paper Industry, it is neutral as there is no change in existing tax structures. More details in this regard will be sent to you later.  Other important proposals of the budgets are given as hereunder -

 

1)         The Central Board of Excise and Customs has been renamed as Central Board of Indirect

            Taxes and Customs.

 

2)         LTCG above Rs 1 lakh taxed at 10%, :   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.

 

3)         Distributed income of equity oriented mutual funds to be taxed at the rate of 10 per cent.

 

4)         Education cess increased to 4 pc from 3 pc to collect additional Rs 11,000 cr.

 

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

 

6)         Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh.

           

7)         Corporate tax reduced by 25 pc extended to companies with turnover of Rs 250 cr to

             benefit small, micro and medium enterprises.

  

8)         No change in personal I-T rates:   No changes in personal income-tax rates

             However, for salaried tax-payers it is proposed for a standard deduction of Rs 40,000  

             towards transport and medical allowance.

 

9)         Senior citizens can claim tax deduction of Rs 50,000 towards medical expenses.

 

10)       National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged

            into one entity and subsequently listed.

 

11)       Government revises fiscal deficit target:  The government has revised its fiscal deficit

            for 2017-18 to 3.5% of the GDP, against the targeted 3.2%   

 

12)       For 2018-19, against the expected 3.2%, the government revises the target to 3.3% of  GDP.

 

13)       Divestment target for 2018-19 set at Rs 80K cr:  As divestment target exceeded for the  

            current fiscal and raised Rs 1 lakh crores this year, and sets a target of Rs 80,000 crores     for 2018-19.

 

14)       PF relief for women employees:  Employees PF Act to be amended to reduce the contribution of women

            to 8 pc from 12 pc with no change in employer's contribution,

 

15)       Rs 4.6 lakh cr sanctioned under MUDRA scheme,  and the target for loan disbursement

             under this scheme has been set at Rs 3 lakh crore for next fiscal. The mass formalization    

             of MSME sector is happening after demonetization and GST.

 

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