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


- 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

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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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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.