The Finance minister has announced the budget 2018 highlights and the announced by the finance minister impacts all concerned. Here is a lowdown on the highlights.
1. The government has made some important changes in the personal income tax rates applicable to individuals in the past, more specifically in the last three years, so the finance minister has not made any changes to this.
2. The senior citizens can smile wide as there has been an interest exemption from income on bank deposits raised to Rs 50,000.
3. Govt will slash down hardships faced in realty deals; in specific cases when circle rate does not exceed 5 pc of sale consideration.
4. For salaried deduction, a standard deduction of Rs 40,000 will be allowed for transport and medical reimbursement for salaried taxpayers. Also, salaried people and pensioners can claim Rs 40,000 standard IT deduction without any documents.
5. Cash payments that go past Rs 10,000 by trusts and institutions will no longer allow as it will curb cash economy.
6. The major amendment has been introduced in the last budget wherein an investor has to pay LTCG tax @10% of the amount he earned from stock investing.
7. Education cess has been increased from 3 pc to 4 pc and collects about Rs 11,000 Cr.
8. Customs duty on products such as perfumes, aftershave, dental hygiene, room deodorizers, on hair doubled to 20 pc.
9. Import duty on fruit juice has been spiked a great deal from 30 pc to 50 pc.
10. Duties on petrol, diesel marginally revamped and the basic excise duty has been minimized by Rs 2 per liter and Rs 8 a liter road cess introduced.
11. Import duty on televisions such as LCD/LED/OLED panels, and some parts of televisions has been raised to 15 pc; taxes such on wearable devices, smart watches, has almost doubled to 20 pc.
12. Customs duty on imitation jewelry has also increased from 15 pc to 20 pc and almost doubled on all watches to as much as 20 pc.
13. Customs duty on products such as cigarette lighter, sunglasses, bus, toys, and truck tires and some kind of furniture has also increased.
14. Import of solar tempered glass and the manufacturing of solar cells has been exempted from customs duty.
15. Customs duty on certain oils such as crude edible vegetable oils, example groundnut oil, and safflower seed oil has been increased from 12.5 pc to 30 pc; and duty has been increased on refined edible vegetable oil too from 20 pc to 35 pc.
16. A novel scheme has been introduced from electronic assessment to eliminate person-to-person contact.
17. Customs duty on mobile phones has also been increased from 20 percent from 15 percent.