Financial Budget – 2018 was Growth Oriented & focused on big investments infrastructure particularly in Indian Railways. Here are some other features of Budget – 2018:
1 No change in Tax Rate.
All persons including individuals, HUF, Firms, and Companies to pay the same tax. However, Education cess is being increased from 3 to 4 % to be known as Education and Health cess.
2 Relief for Domestic Companies
Domestic Companies having a total turnover or gross receipts not exceeding Rs 250 crores in the Financial year 2016-17 shall be liable to pay tax at 25% as against present ceiling of Rs 50 crore in the Financial year 2015-16.
3 Long term Capital gain exemption
The long-term Capital gain exemption under section 10(38) in respect of listed STT paid shares being withdrawn. However, capital gain up to 31.1.2018 shall not be taxed as the cost of acquisition will be taken as Fair Market Value as on 31.1.2018.
4 STT paid long term capital Gain will be 10%
Tax on STT paid long term capital Gain will be 10% under Section 112A. Further such tax will be liable for TDS.
5 Standard Deduction of Rs 40,000 for salaried employees.
Standard Deduction of Rs 40,000 for salaried employees. However, benefit of transport allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000 under Section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs 5,800.
6 5% of sale consideration in variation vis a vis stamp duty value.
Provision of Section 43CA, 50C and 56(2)(x) being amended to allow 5% of sale consideration in variation vis a vis stamp duty value. On account of location, disadvantage etc.
7 Marked to market loss
Marked to market loss computed as per ICDS to be allowed under section 36.
8 PAN to be obtained by all entities
PAN to be obtained by all entities including HUF other than individuals in case aggregate of financial transaction in a year is Rs 2,50,000 or more. All directors, partners, members of such entities also to obtain PAN.
All companies irrespective of income to file return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact weather it has tax liability of Rs 3,000 or not.