Finance minister Arun Jaitley announced budget 2018 on 1st February 2018. This budget brings some disappointment for investors also for some other sectors as custom duty hiked.
Arun Jaitley said that he proposed this budget keeping in mind the growth of Indian economy.
Here are some highlights of “Budget 2018”
- Finance Minister proposed a new healthcare scheme to help middle-class families. In this scheme, health insurance coverage increases to 5Lakhs per annum.
This scheme will cover 10 Crore families which includes 50Crore beneficiaries. This scheme would be the “world’s largest health care programme”
- New 1.5 Lakh “free health and wellness care center” will be created to bring health closer to home and will render free drugs and diagnostic services. For this programme Rs.1200 Crore has been allocated. It’s a great initiative.
- Another announcement made by Finance Minister was for salaried employees. He put forward to increase the standard deduction limit to Rs.40000. Before in 2004-2005, this limit was at Rs.30000.
- There are no changes announced in income tax slabs. Current income tax rates will continue until next budget.
- Corporate tax has increased to 25% for entities with a turnover of Rs.250 Crore in 2016-2017
- In Budget 2018 there are three good offers proposed by Finance Minister. First one is, senior citizens will get Rs.10000 income exemption in Bank and post office FDs. The second one is, senior citizens will get Rs.50000 exemption in medical insurance under section 80C. And the last one is the investment limit in LIC and other interest-bearing schemes increases to Rs.15 Lakhs for senior citizens.
- 10% tax deduction on long-term capital gains of more than Rs.1 Lakh.
- GST revenue will be received for only 11 months and this needs to be reflected on the balance sheet.
- GST revenue projection amount increases to Rs.7.43 Lakhs
- PAN card became mandatory for businesses with a transaction limit of Rs.2.5 Lakh and more than that.
- Custom duty hiked on few products i.e. mobiles and televisions to boost “make in India” products.
- Solar tempered glass exempted from custom duty.
- 15% Import tax hiked on LED/LCD/OLED panels.
- 20% import tax hiked on watches, wearable devices and footwear
- Custom duty also hiked on imitation jewellery
- allocated Rs.10000 Crore for fisheries and aquaculture development
- allocated Rs.10000 crore for animal husbandry infra fund
- set a credit limit for agriculture sector at Rs.11 Lakh Crore
- The finance minister announced to provide new LPG connections to 8 Crore poor women.