New Delhi: Expressing disappointment over the General Budget, Chief Minister Arvind Kejriwal Thursday alleged that the Centre was “continuing” with its “step-motherly” treatment to Delhi. Kejriwal said he had expected some financial assistance for important infrastructure projects for the national capital. His deputy Manish Sisodia also expressed unhappiness over Delhi’s share in central taxes and duties remaining unchanged, saying the BJP-led Centre treats Delhi residents as “second-grade citizens”. Sisodia said that no plans or schemes have been announced for Delhi Police while the AAP government’s demand for special package for 2,000 electric buses to combat air pollution has also not been addressed. https://www.orissapost.com/kejriwal-accuses-centre-of-step-motherly-treatment/
Disappointing #Budget2018.
Not a single extra rupee increased in Delhi’s share in Central taxes since 2001-02, stays at Rs 325 Cr. No other part of India gets such treatment.BJP govt at Center continues to treat Delhi residents as second-grade citizens. N/1
— Manish Sisodia (@msisodia) February 1, 2018
Emphasis given to improving agriculture, rural development, health, education, infrastructure development across all sectors in #NewIndiaBudget resonates with aspirations of the common man.
— Smriti Z Irani (@smritiirani) February 1, 2018
BJD ‘unhappy’ with budget
It is a grand budget, a lot of announcements for the poor, farmers and tribals. This budget will also cement India as a global economic power
Rajnath Singh | Home Minister
In the 1 hour 45 minute speech, 1 hour was for the poor, this is indeed historic. The opposition has become too pessimistic.
MJ Akbar | Union Minister
Brokers disappointed as govt introduces LTCG tax on equities
New Delhi: Stock brokers Thursday expressed disappointment over the introduction of long-term capital gains tax, saying the markets may react negatively in the short-term. However, some brokers said the move will be healthy for the overall economy.
https://www.orissapost.com/brokers-disappointed-as-govt-introduces-ltcg-tax-on-equities/
Budget development-friendly, will strengthen ‘new India’ vision: PM
New Delhi: Prime Minister Narendra Modi Thursday termed the Union Budget for 2018-19 “development-friendly” and said it will strengthen the vision of a ‘new India’. Congratulating finance minister Arun Jaitley and his team, Modi said farmers, Dalits and tribal communities will gain from the budget.
The budget, he emphasised, will create new opportunities for rural India.
https://www.orissapost.com/budget-development-friendly-will-strengthen-new-india-vision-pm/
Government to develop two defence industrial corridors
FM announces Rs1.48 lakh crore for railways capacity expansion is priority
Govt allocates Rs5.97lakh for infrastructure spending in 2018-19
Imported cars, juices, mobiles, gold, silver to be costlier
How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financial Year 2018-19 #Budget2018 pic.twitter.com/RQgEgPsZXv
— Rishi Bagree ?? (@rishibagree) February 1, 2018
A glance at the numbers #NewIndiaBudget #Budget2018 pic.twitter.com/lCvrNZOuSx
— PIB India (@PIB_India) February 1, 2018
FM reduces corporate tax rate to 25% for Rs 250 cr turnover
New Delhi: Finance minister Arun Jaitley Thursday proposed to lower corporate tax rate to 25 per cent for businesses with turnover up to Rs 250 crore. “This will benefit entire MSME sector which accounts for 99 per cent of companies filing taxes,” Jaitley said while announcing the 2018-19 Budget. The estimates of revenue foregone due to this measure is Rs 7,000 crore in 2018-19. However, for businesses with over Rs 250 crore turnover 30 per cent tax remains. https://www.orissapost.com/fm-reduces-corporate-tax-rate-to-25-for-rs-250-cr-turnover/
Duties on petrol, diesel rejigged; basic excise duty lowered by Rs 2 per litre, Rs 6 additional excise duty abolished, but Rs 8 a litre road cess introduced
Middle Class will now have to pay:
Goods and Service Tax.
Long Term Capital Gain Tax.
Income Tax.
Increased Cess on Income Tax.
This will make them fall in BPL category and hence will be able to avail all Govt Schemes.
Masterstroke by Modi ji.#Budget2018
— Jet Lie(Vasooli Bhai) (@Vishj05) February 1, 2018
PAN to be used as Unique Entity Number for non-individuals from Apr 1.
Rs 40,000 tax deduction on transport, medical expenses
New Delhi: Giving a relief to salaried class, finance minister Arun Jaitley Thursday proposed a standard deduction of Rs 40,000 in lieu of transport allowance and medical reimbursement entailing a revenue sacrifice of Rs 8,000 crore. The minister, however, did not propose any change in the tax slabs or rates for individual taxpayers. “In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of Rs 40,000/- in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses,” Jaitley said while presenting the Budget 2018-19 in Parliament Thursday. https://www.orissapost.com/rs-40000-tax-deduction-on-transport-medical-expenses/
I congratulate the finance minister and his team for
presenting a budget which will help strengthen ‘New India’
visionNarendra Modi | Prime Minister
12:51: House adjourned; will meet Monday 11 am
12:50pm: Budget speech concludes; revenue and expenditure statement presented. Finance Bill moved; Bill introduced
12:47pm: Budget proposals on indirect taxes are mainly on the customs side. To further incentivise domestic value addition and Make in India in some such sectors, customs duty has been increased on mobile phones from 15 per cent to 20 per cent, on some of their parts and accessories to 15 per cent and on certain parts of TVs to 15 per cent. Customs duty on raw cashew is proposed to be reduced from 5 per cent to 2.5 per cent. Education Cess and Secondary and Higher Education Cess on imported goods to be abolished and replaced with Social Welfare Surcharge, at the rate of 10 per cent of the aggregate duties of customs on imported goods, to provide for social welfare schemes of the Government. Goods which were hitherto exempt from Education Cesses on imported goods will, however, be exempt from this Surcharge. In addition, certain specified goods will attract the proposed surcharge at the rate of 3 per cent of the aggregate duties of customs only; Central Board of Excise and Customs renamed as Central Board of Indirect Taxes and Customs. To have audit trail of expenses incurred by trusts and institutions, it is proposed that payments exceeding Rs10,000 in cash made by such entities shall be disallowed and the same shall be subject to tax. Further, to improve TDS compliance by these entities, it is proposed to provide that in case of non-deduction of tax, 30 per cent of the amount shall be disallowed and the same shall be taxed.
12:44pm: At present there is a 3 per cent cess on personal income tax and corporation tax consisting of two per cent cess for primary education and one per cent cess for secondary and higher education. To take care of the needs of education and health of BPL and rural families under newly announced health schemes, the cess is increased by 1 per cent. The existing three per cent education cess will be replaced by a four per cent “Health and Education Cess” to be levied on the tax payable. It is expected to help collect an estimated Rs11,000 crore.
12:39pm: Exemption of interest income on deposits with banks and post offices to be increased from Rs10,000 to Rs50,000 and TDS shall not be required to be deducted on such income, under section 194A. This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes. Limit of deduction for health insurance premium and/ or medical expenditure raised from R30,000 to Rs50,000, under section 80D. All senior citizens will now be able to claim benefit of deduction up to Rs50,000 per annum in respect of any health insurance premium and/or any general medical expenditure incurred. Limit of deduction for medical expenditure with respect to certain critical illness raised from, Rs60,000 in case of senior citizens and from Rs80,000 in case of very senior citizens, to Rs1 lakh in respect of all senior citizens, under section 80DDB. These concessions will give extra tax benefit of Rs4,000 crore to senior citizens. The return on investment in equity is already quite attractive even without tax exemption. There is therefore a strong case for bringing long term capital gains from listed equities in the tax net. However, recognising the fact that vibrant equity market is essential for economic growth, a modest change in the present regime is proposed. The proposed tax on long term capital gains exceeding Rs1 lakh is 10 per cent without allowing the benefit of any indexation. All gains up to January 31, 2018, will be grandfathered. If equity share is purchased six months before January 31, at Rs100 and the highest price quoted January 31 in respect of this share is Rs120, there will be no tax on the gain of Rs20 if this share is sold after one year from the date of purchase. However, any gain in excess of Rs20 earned after January 31, 2018, will be taxed at 10 per cent if this share is sold after July 31, 2018. The gains from equity share held up to one year will remain short-term capital gain and will continue to be taxed at the rate of 15 per cent. It is also proposed to introduce a tax on distributed income by equity oriented mutual fund at the rate of 10 per cent.
12:34pm: No changes in structure of income tax for individuals. Sensex down 100 points, Nifty hovers around 11,000
12:32pm: Corporate tax 25 percent to companies reporting turnover under Rs250 crore in 2016-17; National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed.
12:29pm: To encourage professionalism in post-harvest value addition in agriculture, the government proposes to allow 100 per cent deduction in respect of profit to companies registered as Farmer Producer Companies and having annual turnover up to Rs100 crore in respect of profit derived from such activities for five years from financial year 2018-19. This measure will encourage “Operation Greens” and give a boost to Sampada Yojana.
12:24pm: Tax proposals: Growth in direct taxes 18.7 pc. Average buoyancy 1.7 pc over past seven years. Buoyancy in past two years 1.75 and 2.11 respectively. Returns filed increased; number of effective tax payers rose from 6.47 crore in 2014-15 to 8.27 crore in 2016-17. Currently, a deduction of 30 per cent is allowed in addition to normal deduction of 100 per cent in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income Tax Act. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry. To encourage creation of new employment, the benefit is proposed to be extended to footwear and leather industry. It is also proposed to rationalise this deduction of 30 per cent by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year. Currently, while taxing income from capital gains, business profits and other sources in respect of transactions in immovable property, the consideration or circle rate value, whichever is higher, is adopted and the difference is counted as income both in the hands of the purchaser and seller. Sometimes, this variation can occur in respect of different properties in the same area because of a variety of factors including shape of the plot and location. To minimise hardship in real estate transaction, it has been proposed that no adjustment shall be made in a case where the circle rate value does not exceed 5 per cent of the consideration. Towards reduction of corporate tax rate in a phased manner, it has been proposed to extend the benefit of reduced rate of 25 per cent also to companies that have reported turnover up to Rs250 crore in the financial year 2016-17. This will benefit the MSMEs that account for almost 99 per cent of companies filing their tax returns. The estimate of revenue forgone due to this measure is Rs7,000 crore during FY 2018-19. No further change in the structure of the income tax rates for individuals as changes have been brought about over the past three years; standard deduction of Rs40,000 in lieu of the present exemption with respect to transport allowance and reimbursement of miscellaneous medical expenses. However, the transport allowance at enhanced rate shall continue to be available to differently-abled persons. Also other medical reimbursement benefits in case of hospitalization etc, for all employees shall continue. Apart from reducing paper work and compliance, this will help middle class employees even more in terms of reduction in their tax liability. This decision will benefit pensioners, too. The revenue cost of this decision is approximately Rs8,000 crore. 2.5 crore salaried employees and pensioners will benefit from this decision.
12:23pm: Fiscal Deficit was brought down to 4.1 per cent in 2014-15 to 3.9 per cent in 2015-16, and to 3.5 per cent in 2016-17. Revised Fiscal Deficit estimates for 2017-18 are Rs5.95 lakh crore at 3.5 per cent of GDP. Fiscal Deficit for 2018-19 projected at 3.3 per cent of GDP.
12:20pm: Emoluments of the President, the Vice President and the Governors were last revised with effect from January 1, 2006.These emoluments are proposed to be revised to Rs5 lakh for the President, Rs4lakh for the Vice President and to Rs3.5 lakh per month for governors. Necessary changes in law to refix the salary, constituency allowance, office expenses and meeting allowance payable to Members of Parliament with effect from April 1, 2018, proposed. The law will also provide for automatic revision of emoluments every five years indexed to inflation.
12:18pm: Reform measures with respect to stamp duty regime on financial securities transactions in consultation with the states and make necessary amendments to the Indian Stamp Act.Government will establish a unified authority for regulating all financial services in IFSCs in India. Government will formulate a comprehensive Gold Policy to develop gold as an assetclass. The Government will also establish a system of consumer-friendly and trade-efficient system of regulated gold exchanges in the country. Gold Monetization scheme will be revamped to enable people to open a hassle-free Gold Deposit Account.
12:15pm: Disinvestment target of Rs80,000 crore for 2018-19; government has approved listing of 14 CPSEs, including two insurance companies, on the stock exchanges.The government has also initiated the process of strategic disinvestment in 24 CPSEs. This includes strategic privatization of Air India.
Mumbai: The BSE benchmark Sensex was trading higher by over 183 points in late morning deals as finance minister Arun Jaitley tabled the Union Budget 2018-19 in Parliament. Buying was led by capital goods, industrials, realty, banks, finance, auto and FMCG sectors. Metal, consumer durables and telecom counters witnessed profit-booking. https://www.orissapost.com/sensex-firms-up-183-pts-as-jaitley-presents-budget/
12:12pm: Industry friendly defence production policy in 2018
12:11pm: Government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system. The government will explore use of block chain technology proactively for ushering in digital economy.
12:10pm: Rs10,000 crore for enhancing telecom infrastructure
12:05pm: UDAN (Ude Desh ka Aam Nagrik) to connect 56 unserved airports and 31 unserved helipads across the country. 16 such airports operational. Effort to set up a Coalition on Disaster Resilient Infrastructure for developing international good practices, appropriate standards and regulatory mechanism for resilient infrastructure development to receive Rs60 crore to be kick-started in 2018-19. NITI Aayog to initiate a national programme to direct efforts in the area of artificial intelligence, including research and development of its applications. Department of Science & Technology will launch a Mission on Cyber Physical Systems to support establishment of centres of excellence. Allocation on Digital India programme doubled to Rs3,073 crore in 2018-19. Government proposes to set up five lakh Wi-Fi hotspots which will provide broadband access to five crore rural citizens. Rs10,000 crore provided in 2018-19 for creation and augmentation of Telecom infrastructure.
12:03pm: Railways’ Capex for 2018-19 has been pegged at Rs1,48,528 crore. A large part of the Capex is devoted to capacity creation. 18,000 kilometers of doubling, third and fourth line works and 5,000 kilometers of gauge conversion would eliminate capacity constraints and transform almost entire network into Broad Gauge. Decision taken to eliminate 4,267 unmanned level crossings in the broad gauge network in the next two years. Redevelopment of 600 major railway stations is being taken up by Indian Railway Station Development Co.Ltd. All stations with more than 25,000 footfall will have escalators. All railway stations and trains will be progressively provided with Wi-Fi. CCTVs will be provided at all stations and on trains to enhance security of passengers. Modern train-sets with state-of-the-art amenities and features are being designed at Integrated Coach Factory, Perambur. First such train-set will be commissioned during 2018-19.
11: 56am: Government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years. Also, the facility of fixed term employment will be extended to all sectors. To incentivize employment of more women in the formal sector and to enable higher take-home wages, it was proposed to make amendments in the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, to reduce women employees’ contribution to 8% for first three years of their employment against existing rate of 12 per cent or 10 per cent with no change in employers’ contribution; proposal moved to take up tunnelling work through Sela Pass
11:50am: Rs3 lakh crore under Mudra scheme in 2018-19
11:49am: Online loan sanctioning to be revamped. Measures to effectively address NPAs of MSMEs.
11:43am: Government to launch a scheme called Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) for management and conversion of cattle dung and solid waste in farms to compost, fertilizer, biogas and bio-CNG; government increased total earmarked allocation for SCs in 279 programmes from Rs34,334 crore in 2016-17 to Rs52,719 crore in Revised Estimate 2017-18. Likewise, for STs, earmarked allocation was increased from Rs21,811 crore in 2016-17 to Rs32,508 crore in Revised Estimate 2017-18 in 305 programmes. Government proposes to earmark allocation of Rs56,619 crore for SCs and Rs39,135 crore for STs in Budget Estimate 2018-19.
11:40 am: The National Health Policy, 2017, has envisioned Health and Wellness Centres as the foundation of India’s health system. These1.5 lakh centres will bring healthcare system closer to the homes of people. These centres will provide comprehensive healthcare, including for non-communicable diseases and maternal and child health services. These centres will also provide free essential drugs and diagnostic services; Rs1,200 crore committed for the project in the budget.Private sector invited to participate through through CSR and philanthropic institutions in adopting these centres; government concerned about impoverishment of families RSBY coverage is Rs30,000 to families; current Rashtriya Swasthya Bima Yojana (RSBY) provides annual coverage of only Rs30,000 to poor families. Several state governments have also implemented or supplemented health protection schemes providing varying coverage. The government has decided to take health protection to more aspirational level. National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to Rs5 lakh per family per year for secondary and tertiary care hospitalisation. This will be the world’s largest government funded healthcare programme. Adequate funds will be provided for smooth implementation of programme.
11: 36am: Government proposes to set up two new full-fledged Schools of Planning and Architecture, to be selected on challenge mode; additionally, 18 new SPAs would be established in the IITs and NITs as autonomous schools, also on challenge mode.
11:35 am: To step up investments in research and related infrastructure in premier educational institutions, including health institutions, the initiative named ‘Revitalising Infrastructure and Systems in Education (RISE) by 2022’ with a total investment of Rs1,00,000 crore in next four years; Higher Education Financing Agency (HEFA) would be suitably structured for funding this initiative; The Government would launch the ‘Prime Minister’s Research Fellows’ (PMRF) Scheme this year. Under this, 1,000 best B.Tech students each year from premier institutions will be selected for Ph.D in IITs and IISc, with a handsome fellowship. It is expected that these bright young fellows would voluntarily commit few hours every week for teaching in higher educational institutions; government committed to provide the best quality education to the tribal children in their own environment. To realize this mission, it has been decided that by 2022, every block with more than 50 per cent ST population and at least 20,000 tribal persons, will have an Ekalavya Model Residential School. Ekalavya schools will be on par with Navodaya Vidyalayas and will have special facilities for preserving local art and culture, besides providing training in sports and skill development.
11:30am: Affordable Housing Fund under NHB; loans to SHGs to Rs75000 cr by 2019; National Livelihood Mission to get Rs5,750 crore in Budget
11:29am: 2 cr toilets in two years; houses for all by 2022
11:28am: Ujjwala scheme target revised from 5 cr to 8 cr beneficiaries; 4 crore electricity connections to the poor under Saubhagya Yojana; Rs 10,000 cr for fisheries and aquaculture
11:25am: Special scheme to support efforts of Haryana and NCR governments to fight air pollution
11:24am: Government will take necessary measures to encourage state governments to put in place mechanisms to buy excess solar power produced by farmers on their farmland from solar powered pumps
11:21 am: The minimum support price for kharif crops will be at least 1.5 times its production cost; Rs 2,000 crore infrastructure fund for farm sector; plan to develop and upgrade 22,000 existing rural haats into Gramin Agricultural Markets (GrAMs). In these GrAMs, physical infrastructure will be strengthened using MGNREGA and other government schemes. These GrAMs, electronically linked to e-NAM and exempted from regulations of APMCs, will provide farmers facility to make direct sale to consumers and bulk purchasers. Agri-Market Infrastructure Fund with corpus of Rs2,000 crore will be set up for developing and upgrading agricultural marketing infrastructure in the 22,000 GrAMs and 585 APMCs. Cooking gas being given free to poor under PMUY, 4 cr unconnected being provided electricity connection, stent
prices slashed; Rs 1290 crore to support bamboo; allocation to food processing ministry increased from Rs715 cr to Rs1,418 cr; to promote organic farming in a big way, Farmer-Producer Organizations (FPOs) and Village Producers’ Organizations (VPOs) in large clusters, preferably of 1,000 hectares each, will be encouraged. Women Self-Help Groups (SHGs) will also be encouraged to take up organic agriculture in clusters under National Rural Livelihood Programme
11:15am: Niti Aayog to create a system to provide better price realisation for farmers
11:13 am: India is today a USD 2.5 trillion economy and will become fifth largest economy in the world from the present seventh largest.
11:12am: Government committed to welfare of farmers; emphasis is on higher incomes for all; achieved average growth of 7.3% in last three years; govt focused on ease of living; exports to grow by 17 pc in 2017-18.
11:08am: “India expected to become fifth largest economy very soon”; “There is a premium for honesty today”; outline of budget includes provisions for less privileged, infrastructure creation, senior citizens care, improving quality of education
11:03 am: Jaitley begins speech. In English and Hindi.
11.00 am: Parliament Session begins. Jaitley to begin speech shortly. Speaker condoles death of Palghar BJP MP Chintaman Wanaga. Lok Sabha won’t have a sitting Friday as mark of respect to Wanaga
10:59 am: Finance Minister expected to delivering speech in Hindi.
It will be a good budget. It will be for the benefit of the common people.
Shiv Pratap Shukla | MoS, finance
10.45 am: Finance Minister Arun Jaitley set to present the Budget in 15 minutes
10 am: Finance Minister Arun Jaitley arrives in Parliament
The benchmark BSE Sensex regained the 36,000-mark by rebounding over 171 points in opening trade as investors built up positions ahead of the Union budget to be unveiled by the finance minister today.
Sensex regains 36,000 mark Nifty above 11,050 ahead of Budget