Major Takeaways - Budget 2018

[CSSwati Rawat]

Direct Tax

 

- Farmer producer companies will get 100% exemption for 5 years

- New employees cost deduction rationalized for 1st year of employment

- Companies with turnover upto 250 Crore will have 25% tax rate

- ₹ 40000 standard deduction allowed to salaried employees

- Interest on FDs limit raised to ₹ 50000 for senior citizen

- Senior Citizen Medical Insurance limit raised to ₹ 50000

- Critical illness expenditure limit also increased to ₹ 1 lakh for senior citizen

- Long Term Capital Gain above ₹ 1 lakh in a year on listed equity shares will be taxed at 10%. Such gains upto 31.01.18 exempted

- Tax on Growth oriented Mutual Fund distributing Dividend

- Total Cess on Income Tax is now 4%

- Electronic Assessment introduced

 

Indirect Tax (Non-GST)

 

- Custom duty on mobile phones and accessories increased

- Educational Cess on some goods reduced

- Certain changes in procedural part of Customs