Budget 2018 clearly indicated a shift in focus to the rural economy, Finance Minister Arun Jaitley introduced a slew of taxes and cess to be imposed on services to help rural welfare programmes.
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Budget 2018 : Income tax remains unchanged
Income tax slabs for the financial year 2018-19 has remained unchanged, the finance minister announced in the Parliament today.
Budget 2018 : Pensions to be partially taxable
Under the National Pension Scheme, the government announced an exemption for withdrawal of up to 40% of the corpus at the time of retirement.
Meanwhile, in case of recognised provident funds, including the EPF, the same norm as NPS will be applied. It implies introduction of taxes on withdrawals from such instruments, which had a total tax-free withdrawal, will now come under the tax ambit.
Budget 2018 : House rent allowance cheer
Jaitley said that the tax exemption for house rent allowance will be raised to Rs 60,000 from the current Rs 24,000-level.
The move is likely to bring in relief to the common man
Budget 2018 : Service tax
The government, in the Union Budget for 2018-17, decided to keep service tax rates unchanged at 14.5% (14% service tax + 0.5% Swach Bharat Cess)
Certain announcements also ensured there were some ‘taxing times’ ahead for the common man.
Budget 2018 : Buying a car costlier now
An additional 1% tax on luxury cars above Rs 10 lakh was imposed by the Centre in the Union Budget today.The Centre also imposed an additional infrastructure cess of 1% on small petrol cars and a 2.5% cess on diesel cars.
Budget 2018 : Krishi Kalyan Tax
Jaitley announced a 0.5% tax on all taxable services under the Krishi Kalyan tax in a bid to benefit the farming community.
Budget 2018 : Cigarettes to cost more
Excise duties on various tobacco products other than beedi have been raised by about 10-15%, Jaitley said in Parliament.
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