Budget 2018 started with the expectations among the individuals and the statements, granting of money for the coming up fiscal year, and plans totally made agree-disagree statements among the people and few political leaders. However, apart from protests and likes, let us explore what the Budget 2018 highlights are and what made the government to introduce such plans!
In fact, a guide to begin Budget 2018 is a mission to create an optimization in agriculture, health, rural development, employment, education, infrastructure sectors, and MSME taxes. The structural reforms will light the Indian economy – the fastest growing in the world. Moreover, as exports and manufacturing services came back to a faster pace, the government decides to achieve more than 8% growth.
One of the Budget 2018 is “Operation Green” is the other mission which will address the fluctuations in the price of Tomato, Potato, and Onion. Coming to the education point, a National Program rolls out under NITI Aayog on centers of excellence on robotics, IoT, AI, etc. rolls out.
Budget 2018 Highlights
Kharif crops those are remained as unannounced in MSP will have one and half times more cost. In fact, Institutional Farm Credit proposed 11 lac crore for 2018-19 whereas it was 8.5 lac crore in 2014-15. The rural hits (22,000 in number) will have a development into Gramin Agricultural markets. This will safeguard the interests of small and marginal farmers up to 86%.
- Loans to Women Self Help Groups now will make a raise to Rs.75,000 crore. Whereas, it was Rs.42,500 crore the last year.
- Fisheries and Animal Husbandry Sectors will receive Rs.10,000 crore whereas Rs.1290 crore granted to National Bamboo Mission.
- The secondary and tertiary treatment for the 10 crore poor and vulnerability families is the World’s largest protection scheme that received a family limit up to Rs.5 lac.
- For SCs Welfare fund increases and health, education, and social protection get 1.38 lac crore. Further, Tribal students will step-in into Ekalavya Residential School in each block by 2022.
- Free LPG connections, toilets, and electricity to lower and middle-class families through the schemes – Ujjwala, Saubhagya, and Swachh.
- Fiscal deficit expected at 3.5% and 3.3% projected for 2018-19.
- Disinvestment reaches Rs.1,00,000 crore crossing estimated Rs.72,500 crore.
- Development of ten iconic tourist spots targeting 10 prominent sites.
- Infrastructure development – Rs.5.97 lac crore
- Farmer Producer Companies will have a 100% deduction with a yearly revenue up to Rs.100 crore for five years from 2018-19.
- An extension proposal to reduce the rate of 25% for companies which have a turnover less than 50 crores (in the Financial year 2014-15), to companies having turnover up to 250 crores (in Financial Year 2016-17), to benefit small, micro, and medium enterprises.
- Emoluments pay to the new employees will have a deduction up to 30% under section 80-JJAA. This will relax to 150 days for leather and footwear industry in order to create more employment
- Rs.40,000 standard deduction in transport allowance exemption and medical expense reimbursement. In fact, this benefits 2.5 crores, salaried employees, and pensioners.
- Transactions with respect to the immovable property will have no adjustment where Circle Rate restricts to exceed 5% of consideration.
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Budget 2018 Highlights: Senior Citizen Benefits
- Under section 80D, a hike in health insurance (premium and medical expenditure) deduction limit from Rs.30,000 to Rs.50,000.
- Extending proposal of Pradhan Mantri Vaya Vandana Yojana up to March 2020.
- Bank deposits or post office deposit interest income exemption will increase from Rs.10,000 to Rs.50,000.
- Medical expenditure increase in case of critical illness suffering from Rs.80,000 to Rs.1,00,000 under 80DB section.
- No deduction in TDA under 194A section indeed. All fixed and recurring deposit schemes will benefit the interest.
- Current investment limit extended from Rs.7.5 lac per senior citizen to Rs.15 lac.
Budget 2018 Highlights on Tax:
- At 10% rate, Long Term Capital Gains tax exceeds to 1 lac restricting indexation benefit. However, an exemption on all gains up to Jan 31, 2018.
- Promoting trade in stock in IFSC by providing more concession for IFSC.
- Collecting direct tax with a proposal to bring out E-assessment across the country in order to avoid person-to-person contact which leads to efficiency and transparency.
- Cash payments exceeding Rs.10,000 will have a tax subjection, especially for institutions and trusts. In fact, this is to control the payments and economy.
- Changes in customs duty to create number of jobs in the country. Further, to add domestic value and ‘Make in India’ in the sectors such as food processing, auto components, furniture, electronics, and footwear.
- Incrementing cess on personal and corporation tax from 3% to 4%.
- At 10% rate, introducing equity mutual funds based distributed income.