In some relief to salaried class, Union Finance Minister Arun Jaitley on Thursday proposed a standard deduction of Rs 40,000 in lieu of transport allowance and medical reimbursement entailing a revenue sacrifice of Rs 8,000 crore. Jaitley presented the fifth full budget of this government in Lok Sabha today. In his speech, the finance minister said there was a significant widening in the tax net and as many as 85.51 lakh new taxpayers filed returns in 2017-18.
The Economic Survey of India 2017-18 presented on January 29 presented a healthy picture of direct and indirect taxation. The survey said the tax net in the country widened significantly with 18 lakh new individual taxpayers and a healthy increase in voluntary registrations.
Here are the tax highlights from Union Budget 2018
The government proposes no change in personal income tax rates for salaried class.
There’s been a 12.6% growth in direct taxes in 2017-18; 18.7% growth in indirect taxes in 2017-18
5.51 lakh new taxpayers filed returns in 2017-18, as against 66.26 lakhs in 2016-17. The number has increased from 6.47 crore in 2016-17 to 8.27 crore by end of 2017. Also Read: Union Budget 2018 highlights
Liberalised presumptive income schemes for small businesses with income below Rs 2 crore, similar schemes for professionals with income below Rs 50 lakh.
Rs 90,000 crore additional income tax collection in 2016-17 and 2017-18.
Corporate tax reduced to 25 per cent for companies with turnover up to Rs 250 crore, move to boost MSME sector.
Jaitley proposes revision in monthly emoluments of President of India at Rs 5 lakh,, Rs 4 lakh for vice president and Rs 3.5 lakh for governors.
Standard deduction of Rs 40,000 for salaried taxpayers.
Long-term capital gains tax of 10 per cent on investments over Rs 1 lakh.