No Change in Tax Slabs in this Budget:

  • There will no change for tax slabs for income tax.
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried class.
  • Section 80D limit proposed to be hiked to Rs 50,000 for senior citizens

Proposals and Announcements:

  • All trains will soon have Wifi and CCTV.
  • All railways stations with footfall more than 25,000 to have escalators
  • PAN a must for transactions above Rs 2.5 lakh or more
  • Govt health scheme to cover 10 crore poor families is world’s largest government-funded health protection scheme.
  • Electronic IT assessment will be rolled out across the country,
  • Kisan credit card facility extended to fisheries and animal husbandry sectors.
  • 2 crore more toilets will built under Swachh Bharat Mission.
  • 1 crore houses to be built under Pradhan Mantri Awas Yojana (PMAY) in rural areas.
  • Rs 4.6 lakh crore sanctioned under MUDRA Scheme to target 3 lakh crore for lending under PM Mudra Yojana
  • 99 cities selected for smart cities project with an outlay of Rs 2.04 lakh crore.
  • 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access
  • Cash payments of more than Rs 10,000 by trusts and institutions will not be allowed.
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 per cent:
  • 60 crore bank accounts under the Jan Dhan Yojana to be opened.
  • Bitcoins not a legal tender and Govt. will identify it as illegitimate transaction.
  • Govt will bring a scheme to provide a unique ID to every enterprise similar to Aadhaar.
  • Health and education cess has been increased to 4% from 3%
  • Rs 600 crore alloted to Tuberculosis patients undergoing treatment.
  • Amrut program to focus on water supply to all households in 500 cities.
  • Government to contribute 12 per cent of EPF contribution for new employees in all sectors
  • proposed to introduce tax on distributed income by equity oriented mutual funds at 10 per cent.
  • proposed to tax long term capital gains exceeding Rs 1 lakh at 10% without indexation.
  • Specialised railway university to be set up at Vadodara.
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY), to be increased to Rs 15 lakh from the present Rs 7.5 lakh.
    Airport capacity to be hiked to handle 1 billion trips every year.

Some Tax Changes:

  • Customs duty on dental hygiene, perfumes, after-shave, room deodorizers, deodorants, preparations for use on hair increased to 20%.
  • Import duty on fruit juice increased from 30% to 50%.
  • Customs duty on mobile increased to 20% from existing 15%
  • Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%, duty on smart watches, wearable devices, footwear increased to 20%.

Salary Changes:

proposed revising salary of:

  • Rs 5 lakh for the President of India
  • Rs 4 lakh for the Vice President
  • Rs 3.5 lakh for the Governors

In short, the budget 2018-19 is balanced budget to every sector. There is no change in Salaried class but 1% extra in form of cess to be extra burden. Let us know in comments if you are happy with the budget.