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Budget 2018 Tax Highlights on Income Tax, Deductions in India. Fail or Pass ?

Budget 2018 Tax Highlights on Income Tax, Deductions in India. Fail or Pass ?

Fiscal Budget 2018 - 2019 Announcement with respect to Income Tax, Deductions, Benefits including Impact and Key Announcements in India. Is Budget 2018 Hit or Fail


Budget 2018 Highlights

The Union Budget for FY 2018 – 2019 is all here.

Some of the Key Highlights in Income Tax rates

» No Change in Personal Income Tax Rates. However – an additional benefit of

» Rs 40000 Standard Deduction for Salaried  (An additional Deduction)

» Rs 50000 Interest Free Income from Fixed Deposit, Bank Deposit – Section 80D

» Rs 50000 as Deduction under Health Insurance Premium, Medical bills for Senior Citizen

» Income Tax for Smaller Companies with Annual Turnover upto 250 Crore is reduced to 25%. Almost 98% Companies in India will Benefit with this Lower Corporate Taxes. However - No Corporate Tax rate cut for Listed Companies


Direct Tax (Income Tax) Slabs FY 2018 - 19

Income Range Income Tax Slabs
Upto Rs. 3 Lakh Nil
Rs. 3 Lakh to Rs. 5 Lakh 5% / NIL for Very Senior Citizen (above 80 Years)
Rs. 5,00,001 to Rs. 10,00,000 Rs 12500 + 20% on income above 5 Lakh / 20% for Very Senior Citizen
Above Rs. 10 Lakh Rs 1,12,500  + 30% on income above 10 Lakh / Rs 1 Lakh + 30% on Income above 10 Lakh for Very Senior Citizens.

Additional Surcharge (for those in High Income Bracket)

1. 10% for Income in between Rs 50 Lakh to 1 Crore

2. 15% for Income above Rs 1 Crore

3. Education Cess of 2% Continues 

Additional Deduction Rs 5000 for People with income less than Rs 5 Lakh p.a. Exemption Limited u/s 80GG remained same as Rs 60000 /yr

Rest all other Standard deductions remains same 


Capital Gain Tax on Sale of Shares

» Capital Gain for on Short Term Capital Gain on Sale of Shares at 15%

» Long Term Capital Gain on Sale of shares at 10%


Income Tax Highlight on Income of MP, Minister

» Salary Hike of President, Vice President and Governor

» Even Salary Hike of MP will be linked to Inflationary Factor

» However - nothing referred about any kind of Salary Hike for Defence Forces


Announcement on HealthCare

» 1200 crore for Health Wellness Centres (1.5 lakh centres health care centres will bring health closer to every household. The centres will provide free essential drugs and diagnosis). Means 80000 per wellness center

» Rs 5 Lakh Medical reimbursement under Ayushman Bharat Program, launch a flagship National Health Protection Scheme initiative with nearly 50 crore beneficiaries which will provide up to Rs 5 lakh per family per year,for hospitalisation, one of the largest such benefits program anywhere in the world. 


No Announcements

» Nothing Mentioned about Home Loan Interest Rate Exemption

» Nothing Mentioned about bringing Petroleum Products under GST. The Petrol and Diesel Price will continue to be selling under VAT and Excise Duty

» Nothing mentioned about Waiver or Rebates for Electric Cars, Hybrid Cars

» No Announcement on Loan Waivers as what was previously Promised to Farmers

» No Announcements on Old Car VVMP (Voluntary Vehicle Fleet Modernization Plan) on 10 year+ Old Car Sell off and GST Rebates on New Car Purchase

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Saturday, 16 November 2019

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