Budget2018

30Jan

Expectations of the common man from the Union Budget 2018-19

Union Budget 2018- 19 is going to announced by our finance minister Mr.Arun Jaitely on 01 February 2018. People have a lot of expectation from the new budget and they are very excited to know how it will affect common man’s life. This will be the last full budget of Lok Sabha led by our respected prime minister Mr. Narendra Modi so people are more curious about the new budget.

Few highlights- Expectation from budget 2018

1. Real estate sector– According to experts, real estate sector may include under GST after April 1st. This idea will introduce in the budget session. The main purpose of doing this to bring transparency in the transaction of property and to stop corruption. According to expert – property is not a service but people use it for construction for the residential purpose that is why it can be treated as service. It will clean the property market and also encourage the foreign investor to come and invest more in the real instate sector.

2. Insurance sector – The Healthcare Federation of India ‘NATHEALTH’ is asked to government to make health insurance necessary for all the citizen. According to industries, there is a need to give stress on the importance of medical insurance also there should be a development of powerful healthcare sector. Since many steps taken by the government in the favour of health industries then people have hope that this new budget will continue to run on the same path. With the good support from the government, the healthcare insurance industry is ready to face the challenges to invest resources in the development of infrastructure as well as it will develop expertise in this sector.

3. Auto Sector – The head of luxury car wants a reasonable tax rate on big SUV’s and cars which help them by expanding in the market easily. The automobile industries want to regain their incentives given on research and development because government reduced weighted tax deduction on research and development to 150 from 200 percent in the previous level. In pre-budget wishlist of this sector, the SIAM has enlightened few imported electric vehicle parts in preferential tariff list which will help to promote the eco-friendly technology.

 

4. Personal Finance sector – The Industry body CII has proposed that dividend distribution tax rate should be 10 percent in the upcoming Budget in order to motivate participation of different stakeholders in our country’s financial markets. In this budget session, Narendra Modi government is planning to impose a long-term capital gain tax on equity investment. In the past, Modi government felt that tax on equity investment is not too much as compared to tax implemented on the other investment. So now they are planning to bring a new tax for stock market investment. This decision will bring more investment in taxable section.

5. Expectations on consumer goods – The Federation of All India Farmer Association asked the government to propose a certain taxation policy to ban cigarette smuggling because Increasing in the tobacco taxation in the past time gave the birth to smuggling of tobacco. Consumer goods makers have requested to the government to make customs duty double on imported products like air conditioners, refrigerators and washing machines, the main aim to do this is to encourage domestic manufacturing. They also want to cut down the rate of GST on ACE good to encourage consumption.

So these are the few important highlights of budget 2018-19 that will be introduced on 01 February 2018. Then we will see what are the actual changes made by our government in the favour of common man.

More details on Budget :- http://www.epicresearch.co/budget-express

27Jan

Union Budget 2018-19 : Will the government revise tax slabs ?

Union budget 2018-19 is set to be presented on 1st February’18 and this is surely going to be a challenging one for the government. As we know government took various bold steps like demonetization, goods and service tax now it is time again for them to prove their potential in this final budget before the general polls to be held in 2019.

Once the budget is delivered the most significant change everyone look for is the revision made in tax slabs. In the upcoming budget, citizens are expecting an increase in the limit of tax exemption. Recently a proposal was made to the finance minister for revising tax slab and increase the present limit of annual income of Rs 2.5 lakh to Rs 3 lakh.

Corporate bodies have started putting their expectations. A domestic company which distributes dividend has to pay Dividend Distribution Tax(DDT) on profit which is already been taxed at a high rate of 20.36% and investors are required to pay 10% income tax who receives dividend above Rs 10 lakh. From budget 2018 it is expected that government will withdraw this dividend distribution tax and tax on dividend income.

With governments vision to take India higher in the ranking of “Ease of doing business” it has been proposed that Income Computation and Declaration Standards (ICDS) should be removed. As an introduction to ICDS has increased compliance burden and it is required to maintain a parallel set of books of account compulsorily.

For the benefit of tax-payer government may introduce some changes in tax slabs. It is expected that limit of deduction on taxable income may get increased from its present level of Rs 1.5 lakh or limit of deduction available on interest component of housing loan may increase from its present level of Rs 2 lakh.

After implementing biggest indirect taxation in the country in the form of GST the government is expected to now move on direct tax as in last November center asked to reform the Direct Tax Laws. For this center has appointed a task force of seven members which will deliver with the direct tax laws in line with tax laws prevalent in other countries. These changes in direct tax laws are expected to bring much wanted relief to individual taxpayers.

Considering the difficulties which real estate developers are facing, with this budget government can either consider withdrawing the amendments made or increase the exempt period of one year.

Improving tax collection, reducing tax burden and removal of difficult processes should be the aim of government this year. Post demonetization and GST now it is awaited how the government will recover variations caused by it on present economic conditions of a country.

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