The 2018 budget is considered to be a crucial one, as it would be the first since the rollout of Goods and Service Tax (GST) regime in India. It was widely expected that the budget would either increase the exemption limit or introduce a standard deduction for salaried people to reduce the tax burden, in addition to a reduction of tax rate for the ₹5 lakh -₹10 lakh slab from 20% to 10%, and an increase in the 30% band above ₹10 lakh, but nothing of such sort happened.
- A special scheme to tackle air pollution in Delhi.
- A healthcare programme called ‘National Health Protection Scheme’ to cover 50 crore poor people.
- Government to contribute 12% Employees’ Provident Fund for new employees for 3 years.
- Medical allowance and transportation allowance to be replaced by standard deduction of ₹40,000 for salaried employees.
- No reduction in personal income tax rates.
- Cess on income tax increased from 3% to 4%.
- 10% tax imposed on income from equity-based mutual funds.
- Corporate tax reduced from 30% to 25% for companies with turnover up to ₹250 crore.
- Salaries of Members of Parliament to be increased every 5 years.
- Customs duty on mobile phones increased from 15% to 20%.
Here is a info graphics image which shows key take away for salaried class.