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Direct Taxes
The Budget 2018 updates with regards to direct taxation, had a plethora of initiatives:
- INR 6.4 Lakh Crore total tax collection in FY 2014-15 has increased to INR 8.47 Lakh Crore total tax collection in FY 2016-17
- Taxpayer base has increased – 85.51 Lakh new taxpayers who filed income tax returns in FY 16-17
- INR 80,000 Crore disinvestment target to be set
- 100% Tax Deduction to be provided to farmer producer companies with the turnover of up to INR 100 Crore, for 5 years
- Reduced Corporate Tax of 25% to be extended to companies with turnover of up to 250 Crore
- Government to contribute 12% of new employee wages as part of EPF for next 3 years
- New women employees’ contribution to EPF to be reduced from 12% to 8%
- Personal income tax slabs to remain unchanged
- The standard deduction of INR 40,000 to be re-introduced in lieu of the medical reimbursement worth INR 15,000 and transport allowance worth INR 19,200 which are currently available. Thus the net benefit will only be INR 5,800, which will reach over 2.5 Crore taxpayers
- Health And Education Cess to be increased from 3% to 4%
- Host of tax benefits to be provided for senior citizens
- Capital gains tax at 10% to be re-introduced on gains of over INR 1 lakh on long-term investments
- E-assessment platforms to be rolled out across all touch-points to reduce human intervention
Post Tags- Budget 2018-19, Income Tax, Direct Tax, IT