Key Taxation Highlights Union Budget 2018-19

In the context of upcoming General Elections, Budget 2018-19 laid a strong focus on the agricultural, Infrastructure, healthcare and education sectors in the country.

Some of The Key Highlights of the budget are as follows:

Taxation:
1) No change in the structure of the income tax rate for individuals, HUF, Firms and Companies.
2) For AY 2016-17, 1.89 crore salaried individuals have filed their returns and have paid total tax of ₹ 1.44 lakh crores which works out to average tax payment of ₹ 76,306/- per individual salaried taxpayer.
3) Standard deduction of ₹ 40,000/- for salaried assessee in lieu of the present exemption in respect of transport allowance of ₹ 19,200/- and reimbursement of miscellaneous medical expenses of ₹ 15,000/-. Thus net benefit to salaried assessee only ₹ 5,800/-.
4) For senior citizens exemption of interest income on deposits with bank and post offices to be increased from 10,000/- to ₹ 50,000/- and no TDS on such income.
5) For senior citizens limit of deduction for health insurance premium and/or medical expenditure from ₹ 30,000 to ₹50,000/- under section 80D.
6) For senior citizens limit of deduction for medical expenditure in respect of certain critical illness from ₹ 60,000/- in case of senior citizens and from ₹ 80,000/- in case of very senior citizen to ₹ 1 lakh in respect of all senior citizen under section 80DDB.
7) Longer term capital gain exceeding ₹ 1 lakh arising from transfer of listed equity shares, units of equity oriented fund and unit of business trust propose to tax at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January , 2018 will be grandfathered.
8) Income distributed by equity oriented mutual fund at the rate of 10%.
9) Benefit of reduction of corporate tax rate to 25% for companies who have reported turnover up to ₹ 250 crore.

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