The much-hyped Union Budget 2018 has finally been announced by our honourable finance minister Arun Jaitley. As predicted, the budget is not a populist one, but it definitely aims to achieve the new fiscal deficit target of 3 percent. India’s Union Budget 2018 aims to stabilize the economy and bring back the lost momentum. Will this budget be able to please the homemakers and professionals alike? Well, in this post, we have summarized the major highlights of budget 2018.
1 – What products would be dearer and what products would be cheaper–
It is an imperative question after every budget. Well, the answer is a chunk of imported items like mobile handsets, cars, motorcycles, tri-cycles, jewellery, fruit juices, perfume and footwear would be likely to cost more due to hike in the customs duties on these products.
However, a handful of imported items like imported cashew nuts, solar tempered glass, and raw materials are likely to cost less. This is because the government has reduced the import duty on these products.
2 – What this budget has brought forth to the salaried people-
There is a moment of rejoice for the salaried class. While there is no change in income tax slab, the Union Budget 2018 has allowed standard deduction of Rs 40,000 per annum to the employees on their tax returns in substitute for transport and medical allowance.
Earlier, the salaried employees used to get 19,200 per annum as transport allowance and Rs 15,000 as medical bill reimbursement. In order to save the documentation work, not every employer used to give salary under these sub-heads to the employees, therefore resulting in loss of tax benefit.
Further, in order to stimulate job creation, the government of India last year announced PMRPY (Pradhan Mantri Rozgar Protsahan Yojana) scheme. Under the scheme, the government in the announced a relief of 8.33% for the companies hiring the fresh talent for the first 2 years and now the contribution relief has spurred to 12% in all the sectors. This will, in return, improve the hiring of fresh talent in the company and improve the job scenario. Companies may also pass this benefit to the employees.
A take on the crypto-currency- Last year, we saw a big rise in the crypto-currency market. The Bitcoin, Ethereum, Dash, Litecoin ruled the roost. Some people called it as a fad, and some investors continued minting money from these, but now finally the ordeal has been passed. India Union Budget 2018 plans to ban cryptocurrency market in India.
For the investors- FM Jaitley has announced a tweak in Long Term Capital Gain Tax of 10 percent on capital gains over Rs 1 lakh without the benefit of indexing with immediate effect. This change could trigger the correction in the stock market with significant impact.
All in all, India’s Union Budget 2018 is a mixed bag of emotions. For some, it has brought disappointment, and for others, it has brought happiness. Though some decisions have hurt the investor sentiment to some extent, but definitely this budget is expected to boost growth, increase the jobs, and stimulate private investment.