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Key Highlights from Budget 2018: 10% LTCG tax introduced, No changes in personal income tax rates
NEW DELHI: Finance Minister Arun Jaitley's delivered this government's fifth and last full Budget amid subdued economic growth, challenging fiscal situation and farm distress. What makes it all the more important is the upcoming elections in eight states this year and the Lok Sabha election next year, all of which put tough demands on him. How has Jaitley managed to balance populist demands, the need to support economic growth and PM Modi's focus on fiscal discipline and reforms? Read the highlights
 
Fiscal Situation
* Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be 3.3% of GDP in the next fiscal
* Rs 21.57 lakh crores transferred as net GST to states against a projection of Rs 21.47 lakh crores
Tax
* 85.51 lakh new tax payers filed income tax returns in FY17 * NO PERSONAL INCOME TAX CHANGES PROPOSED IN BUDGET * Growth in direct taxes (till Jan 15) is 18.7 % * Surcharge of 10 pc on income above Rs 50 lakh but less than Rs 1 cr to be continued next year; 15 pc on income above Rs 1 cr to also continue. * 100% tax deduction is allowed to co-operative societies * Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial year 2016-17
* Senior citizens to get Rs 50,000 per annum exemption for medical insurance under Sec 80D  * Rs 7.5 lakh per senior citizen limit for invest ..
* Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried tax payers * Govt to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5 pc of sale consideration * Rs 8,000 crore revenue lost due ..
* Rs 7,000 cr revenue forgone on account of lower corporate tax for Rs 250 cr turnover cos * Rs 19,000 cr revenue loss on direct tax in last fiscal * LONG TERM CAPITAL GAINS EXCEEDING RS 1 L
* Short term capital tax remains at 15%
* A tax on distributed income at 10% * Education cess increased to 4% from 3% to collect additional Rs 11,000 cr * GST revenue will be received only for 11 months, that will have an effect on balance sheets
Agriculture
 * The government's emphasis will be on generating higher incomes for farmers, by helping them produce more with lesser cost, ..
* Jaitley stressed on the fact that India's agricultural production is at a record high level today. 275 million tonne foodgrains and 300 million tonne fruits and vegetable have been produced in the country.
* The FM said the government wants farmers to earn 1.5 times the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price. Jaitley said the Centre will work with states to ensure that all farmer get a fair price.
* Agricultural market and infra fund of Rs 2000 crore fund will be set up to strengthen the market connectivity. * A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote agricultural products.  |
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