Finance Minister Arun Jaitley has proposed no new changes in income tax rates applicable to individual. The finance minister, however, introduced standard deduction of Rs. 40,000 for the salaried class. Standard deduction allows for a flat deduction from income of a salaried individual towards expenses that would incur in relation to his or her employment. The government has made many positive changes in individual tax rates in past three years, Mr Jaitley said, delivering his Union Budget 2018-19 speech in Parliament on Thursday.
This is the first Budget after the rollout of GST, which came into force from July 1. Check out live updates on Union Budget 2018-19 and market movement here.
Also, exemption on medical expenses on critical illness has been raised to Rs 1 lakh, he said in his 110 minute speech. Jaitley said a 10 per cent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till January 31 would be grandfathered. A 10 per cent tax on distributed income by equity-oriented mutual funds has also been proposed in the budget.
12:45 pm: Finance minister proposes increase in custom duty on mobile phones to 20% from 15%
12:43 pm: Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses says Finance Minister Jaitley
12:39 pm: Budget 2018: Jaitley proposes to extend 25% corporate tax rate to companies with revenue up to Rs 250 crore
12:37 pm: FM says I do not wish to make any changes to personal income tax rates applicable to individuals
12:35 pm: The Finance Minister proposes two defence industrial corridors in the country to promote domestic production
12: 30 pm: National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed.
12:26 pm: Emoluments of the President to be revised to Rs 5 lakh per month and Vice-president to Rs 4 lakh per month.
12:17 pm: My government will also establish a dedicated affordable housing fund in the National Housing Bank funded from priority sector lending, says FM Jaitley.
12:14 pm: Regional air connectivity scheme shall connect 56 unserved airports and 31 unserved helipads.
12:12 pm: Optic fibre will be laid in one lakh gram panchayats; five lakh Wi-Fi spots to be set up in rural areas, proposes FM.
12:11 pm: Jaitley says Centre to contribute 12% of wages to new employees under EPF.
12:07 pm: FM proposes railways stations with more than 25,000 footfall to have escalators. All railway stations and trains will have Wi-Fi and CCTVs subsequently. Over Rs 1.48 lakh crore to be allocated for railways in next fiscal, added Jaitley.
12:02 pm: Under AMRUT programme water supply to all households will be ensured in 500 cities. Water supply contracts worth 19,428 core for 494 projects have been awarded.
12:01 pm: Employees PF Act to be amended to reduce contribution of women to 8 pc from 12 pc with no change in employer’s contribution, says FM Arun Jaitley.
12:00 pm: Target of Rs 3 lakh cr for lending under PM MUDRA Yojana in 2018-19, says FM, adding Government proposes outlay of Rs 7,148 crore for textile sector.
11:59 am: Government’s budget for health, education and social security increased to Rs 1.38 lakh crore for 2018-19 from Rs 1.22 lakh, states Jaitley.
11:53 am: Finance Minister announces an allocation of Rs. 56,619 crore for SC welfare and Rs 39,135 crore for ST welfare.
Budget 2018: 24 new govt medical colleges and hospitals to be set up by upgrading existing district headquarters hospitals.
Union Budget 2018: 6 crore toilets constructed under Swachh Bharat Mission; aim is to build 2 crore more toilets, says FM Jaitley.
11:47 am: Loans to women self-help groups increased 37% on year-on-year basis.
11:40 am: Central Government to set up two new full-fledged Schools of Planning and Architecture, says Finance Minister.