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Union Budget 2018-19: In the long term we are all taxed - IndiaNotes.com
Union Budget 2018-19: In the long term we are all taxed
LKP Securities | Published: 02 Feb, 2018  | Source : IndiaNotes.com

Highlights:


- Revised Fiscal Deficit estimated at 3.5% of GDP and projected at 3.3% of GDP for 2018-19


- Adherence to FRBM in bringing down the GOI Debt to GDP ratio to 40% going forward


- 10% Tax on income distributed by Equity MF and 10% Tax on Long-Term Capital Gains on listed equity exceeding ₹1lakh imposed


- Divestment Target of ₹ 80K cr for the current fiscal


Corporate Tax Reforms:

 

- Introduction of long term capital gain tax (LTCG) exceeding Rs1 lakh at the rate of 10% and all the gains upto 31st Jan 2018 would be grandfathered. Short term capital gain tax retained at 15%


- Introduction of tax at the rate of 10% on distributed income by equity oriented mutual funds


- Current 3% education cess applicable to personal tax payers & corporates increased to 4%


-LTCG also applicable to funds of funds investing in exchange traded funds


- Extension of benefit of reduced tax rate of 25% to companies having turnover of upto ₹250 cr in FY17 benefitting entire MSME sector


-For companies admitted under IBC (Insolvency & Bankruptcy Code), to allow aggregate amount of unabsorbed depreciation & brought forward loss to be reduced from book profits for MAT calculation


- Farmer producer companies having turnover of upto ₹100cr to get 100% tax deduction from the government under “Operation Green” mission


- Tax incentive for IFSC – 1) non-corporate tax payers operating in IFSC shall be charged Alternate Minimum Tax (AMT) at 9% par with MAT 2) Non-residents would be exempt from capital gains tax for transfer of derivatives & certain securities on stock exchanges in IFSC


- Custom duty changed for certain sectors – 1) on mobile phones increased from 15% to 20% and on certain parts of TVs to 15%


Personal Tax


- There has been no change in the personal tax rates for individual personal tax payers


- Increase in standard deduction from ₹34K to ₹40K which netted off against transport allowance & medical expenses translates into marginal benefit


- For senior citizens – 1) Exemption of interest income on deposits with the banks & post offices to be increased from ₹10,000 to ₹50,000 2) Raising the limit of deduction for health insurance premiums & medical expenditure from ₹30,000 to ₹50,000 under section 80D

  Read full report Click here to read the full report


About LKP Securities

What started as one of India’s first securities brokerage houses in 1948 is today one of the country’s largest multi dimensional financial services group. LKP Securities is a Non Banking Finance Company (NBFC) registered with Reserve Bank of India & a listed public limited company having a networth of Rs.142 crores as on FY10. They are India's first financial group to be awarded the prestigious ISO 9002 certified KPMG Quality Registrar, USA, for certain businesses.

 

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