Budget 2018 proposals to be implemented from April 1. How it impacts you – Times of India

NEW DELHI: Various changes proposed in the
Union Budget 2018-19 (presented by Finance Minister Arun Jaitley on February 1), including reduced import duties on select items and reintroduction of tax on long-term capital gains (
LTCG), come into effect from
April 1, 2018 (Sunday). Here are some of the important decisions taken in this year’s budget:

LTCG on equities

The Union Budget 2018 proposed 10 per cent tax on long-term capital gains (LTCG) over Rs 1 lakh. Till now, any long-term gains made on equity shares or any equity mutual fund units were exempt from tax. The government, however, extended indexation benefit for computing tax liability on sale of shares listed after January 31.

The 2018 Budget had after a gap of 14 years reintroduced 10 per cent tax on LTCG.

Standard deduction

There has been no change in the Income Tax slabs this year but for salaried employees, a standard deduction of Rs 40,000 is introduced by the government in lieu of transport and medical reimbursements.

Budget 2018 has also increased the cess on incomes from 3 per cent to 4 per cent, which can increase your tax bill.

Heyday for grey days (senior citizens)

The exemption limit on income from interest raised by five times to Rs 50,000 per year. No TDS will be deducted from the interest income of senior citizens. The limit of deduction for health insurance premium and medical expenditure also increased to Rs 50,000 from Rs 30,000 under Section 80D. This additional deduction of Rs 20,000 will help a taxpayer save up to Rs 6,000 per annum.

For senior and very senior citizens, the tax deduction for critical illness will be Rs 1 lakh from April 1, as against the existing limit of Rs 60,000 for senior citizens and Rs 80,000 for very senior citizens.

Corporate tax

Corporate tax on businesses with up to Rs 250 crore turnover has been reduced to 25 per cent from 30 per cent.

List of imported items that will become expensive or cheaper from April 1:


* Completely knocked down (CKD): Custom duty increased from 10 per cent to 15 per cent.

* Completely build units (CBU): Customs duty increased to 25 per cent from 20 per cent earlier.

* Truck and bus radial tyres: Duty increased to 15 per cent as against 10 per cent earlier.

* Imported mobile handsets: Customs duty increased from 15 per cent to 20 per cent; mobile parts and accessories will attract duty of 15 per cent.

* Imported LCD/ LED/ OLED TV panels and other parts of TVs: Customs duty of 15 per cent levied.

* Perfumes, toilet water and imported beauty and make up preparations: Customs duty of 20 per cent as against 10 per cent earlier.

* Wrist/pocket/smart watches/wearable devices and sunglasses: Custom duty have been doubled to 20 per cent.

* Gemstones and diamonds: Custome Duty increased to 5 per cent from 2.5 per cent earlier.

* Duty on imported footwear and silk fabrics has also been doubled to 20 per cent.

* Customs duty on imported fruit juices has been hiked by up to 40 per cent.

* Imported cranberry juice will now attract customs duty of 50 per cent from 10 per cent earlier.

* Duty on orange fruit juice has gone up from 30 per cent to 35 per cent.

* Duty on other fruit and vegetables juice have been increased to 50 per cent from 30 per cent earlier.

* Crude edible vegetable oils like olive oil, ground nut oil: Custom duty hiked to 30 per cent from 12.5 per cent earlier.

* Refined edible vegetable oils including oil, ground nut oil: Custom duty hiked to 35 per cent from 20 per cent earlier.

* Imported gold items, including gold plated with platinum: Surcharge of 3 per cent of the aggregate duties of customs.


* Customs duty on imported raw cashew nuts has been slashed from 5 per cent to 2.5 per cent

* Solar tempered glass or solar tempered glass for manufacture of solar cells/panels/modules reduced to nil duty from 5 per cent earlier.

* Customs duty on raw materials, parts and accessories of cochlear implants has been reduced to nil from 2.5 per cent earlier.

Apart from these, people need to shell out more for driving on the national highways from April 1.

National Highways Authority of India (NHAI) has revised its toll rates by 5 to 7 per cent. As a result, prices of essential commodities are also likely to shoot up, transporters have said.

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