Economy

Union Budget 2018 Highlights: No Change In Personal Income Tax Slabs; Relief For Senior Citizens

Written By Veda Ramaswamy | Mumbai | Published:

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  • Here are the key highlights on income tax from Finance Minister Arun Jaitley’s Union Budget 2018 speech:

Finance Minister Arun Jaitley on Thursday stressed that Union Budget 2018 would focus on four aspects namely-strengthening of agriculture, education, healthcare benefits and improving infrastructure.

Here are the key highlights on income tax from FM Arun Jaitley’s Union Budget 2018 speech:

  • Direct tax collections up by 18.7%
  • Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses
  • Propose to introduce tax on distributed income by equity-oriented mutual funds at 10%
  • Taxpayer base has risen from 6.47 crore in 2014-15 to 8.27 crore in 2016-17
  • More payers joining tax net but turnover not encouraging
  • Propose 100% tax rebate for farmer producer companies having a turnover of Rs. 100 crore
  • Govt has made many positive changes in the personal income tax rates applicable to individuals in the last three years therefore I do not wish to make any changes to this
  • Propose to extend 25% corporate tax rate to companies with revenue up to Rs 250 crore
  • For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000
  • Education and health cess to be increased from 3% to 4%
  • Long-term capital gains exceeding Rs. 1 lakh to be taxed at the rate of 10%
  • Rs 90,000 crore additional income tax collection in 2016-17 and 2017-18 due to measures against tax avoidance
  • Custom duty on mobile phones increased to 20% from 15%
  • Corporate Tax rate cut to 25% for companies with turnover of Rs 250 crore

Reiterating Prime Minister Narendra Modi's vision of 'minimum government, maximum governance', Jaitley stated that India's USD 2.5 trillion economy is on course to achieve a growth of 8 percent, following the 7.2-7.5 percent growth it achieved in the second half of 2018-19.

READ | India Union Budget 2018-19 Live: Get Live Updates & Highlights As Finance Minister Arun Jaitley Announces The Budget

(With PTI and ANI inputs)

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