Budget 2018 Finance Bill full text: No change in I-T slabs; MSMEs get boost

Finance Minister Arun Jaitley tabled the Union Budget 2018 for the year. In hi speech he said did not change the personal income tax slabs. The long-term capital gains will be taxed at 10 per cent for investment over Rs 100,000. A few highlights of the Finance Bill.

Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2018, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in each case in the manner provided therein.

In section 2 of the Income-tax Act,–– (a) in clause (22), after Explanation 2, the following Explanation shall be inserted, namely:–– “Explanation 2A.–– In the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.”;.

Budget 2018: Corporate hospitals must change model to cash in on Modicare

The government's flagship National Health Protection Scheme will increase patient access and lower healthcare costs, but corporate hospitals will have to tweak their business models in order to tap the growth opportunity, say health sector analysts.

Union finance minister Arun Jaitley, in his budget speech on Thursday, announced the National Health Protection Scheme providing hospitalisation cover of Rs 500,000 a year to 100 million families. Jaitley indicated that the scheme was the first step towards universal healthcare and could be extended to cover more families, based on success.

Currently, most of the healthcare spend is out-of-pocket and only about 20 per cent of the population has medical insurance. 

'Enough done in past Budgets': Jaitley defends no relief for middle class

BUDGET 2018 - Finance Minister Arun Jaitley on Friday defended not giving away major relief to the middle class by saying the government has already done enough in the past Budget and will further provide succour in the future depending on fiscal space.

"India has a serious challenge in terms of compliances. India has a serious challenge in term of increasing the tax base and therefore if you analyse the sum total of my last four-five budgets that I have presented, systematically to the smaller taxpayer I have given relief almost in every Budget," he said.

Citing various major announcements done in the past, he said, when the government came in the exemption limit was raised from Rs 200,000, an additional exemption of Rs 50,000 on saving so Rs 100,000 became Rs 150,000 and another exemption Rs 50,000 for housing loan repayments raising it to Rs 200,000 per year.

Modi to BJP MPs: Promote Budget 2018 as pro-people, pro-youth, pro-farmers

BUDGET 2018 IMPACT - Prime Minister Narendra Modi on Thursday asked the BJP MPs to go among the people, especially in their constituencies, to publicise the "pro-people" aspects of the Union Budget, and urged them to work as a bridge between the people and the government.

"This budget is a historical document which embodies the mantra of 'Sabka Saath, Sabka Vikas'. This NDA government not only talks about social justice but also implements it," Parliamentary Affairs Minister Ananth Kumar quoted Modi as having said at a special meeting of the Bharatiya Janata Party parliamentary party.

He was briefing the reporters after the meeting held at the parliament annexe building.

BJP President Amit Shah lauded Modi and Finance Minister Arun Jaitley for presenting the budget, which he termed historical.

Ananth Kumar also said: "The Prime Minister asked the party MPs to reach out to the last man in the queue with the pro-poor, pro-farmer and pro-youth aspects of the budget.

Budget 2018: Imprints of a govt unsure of second term with clear majority

Budget 2018 impact - Sleep metaphors have always been popular in describing central budgets. These are variously called “dream” or “nightmare” budgets, usually depending on which side you are on, in the government or the opposition. It would be reasonable to say, however, that the NDA government’s final full budget in this term is a “restless” budget.

We prefer restless, because “rattled” is too strong a description yet, although it is the budget put together by a worried, impatient government not as sure of a second term with a clear majority as might have been six months earlier.

The Gujarat election was a shock, the traction Rahul Gandhi has been getting since his latest return to active politics is a cause for concern, the latest India Today Mood of the Nation poll has shown for the first time that the BJP is still the front-runner to lead the next coalition but is unlikely to have a majority of its own.

Budget 2018 Market Impact: Most newly listed stocks escape unhurt

Budget 2018 Market Impact - Finance Minister Arun Jaitley on Thursday presented Union Budget 2018-19 in Parliament. This was his fifth and the Narendra Modi government’s last full Budget before heading into the 2019 general elections. Some of the market-related measured announced by Jaitley in his Budget impacted the Indian equity markets. While the stocks in the NSE’s Nifty50 and Nifty Midcap50 indices took more hit, the newly listed ones seemed relatively cushioned.

This EY analysis looks at the announcements in Finance Minister Arun Jaitley’s Union Budget 2018-19 that might have impacted each of the newly listed stocks:

HDFC Standard Life Insurance Company Limited
·                Increase in Education cess from 3% to 4%
·                Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation
·                80JJAA provisions rationalized to give benefit to new employees subject to conditions
·                Transaction in respect of trading of agricultural commodity on recognized stock exchange to be treated as non – speculative transaction
·                Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.
·                Retrospective amendment proposed to exempt services by Naval Group Insurance Fund by way of life insurance to personnel of coast guard under Central Government scheme from 10 September 2004 to 30 June 2017

Budget 2018: A 15-year, Rs 35.3-trillion plan to put Railways on track

BUDGET 2018 - The Indian Railways is working on a Rs 35.3-trillion investment plan by 2032, pushing up the capital expenditure for the ministry by around 92 per cent annually. Going by the ambitious vision, the average annual investment, including capacity addition and modernization, would touch around Rs 2.5 trillion, up from the Rs 1.31 trillion in 2017-18.

This long-term investment will also comprise the modernisation plan of ‘Vision 2030’ and also Rs 8.56-trillion investment target that former minister Suresh Prabhu had kicked off starting 2014-15. “The Indian Railways will require approximately Rs 35.3 trillion by 2032 to create the requisite capacity and modernize the system,” the ministry said in a report to the Parliamentary Standing Committee. The Railways, under Piyush Goyal, has already started the work, aiming to achieve at least 4000 km electrification per year in the coming years.

The capex for Railways during 2015-16 and 2016-17 were Rs 935.2 billion and Rs 1.21 trillion, respectively, posting a significant increase in the recent years.

As per the latest plan, railways freight share may zoom from 33 per cent now to around 47 per cent. It has also set a target of increasing the passenger kilometre to 3.3 trillion PKM in 2030, from about 1.13 trillion PKM now. While the completion of dedicated freight corridors would segregate freight and passenger traffic on high density routes, speed of freight trains will increase from 25 km per hour (kmph) to 100 kmph.  

Budget 2018: FinMin could raise disinvestment target to Rs 1 trn

BUDGET 2018 - Buoyed with the aid of the success of this 12 months’s disinvestment programme, the Finance Ministry ought to set a fair better target of Rs 900 billion-1 trillion (Rs ninety,000-1,00,000 crore) for 2018-19. this may encompass the sale of Air India, a number of different privatization projects, mergers, initial public offerings, the centre’s two exchange-traded price range, buybacks and offers-for-sale, or even monetization of land belongings.

The budgeted estimate for 2017-18 is Rs 725 billion (Rs 72,500 crore), the very best ever for a year thus far. With the purchase of Hindustan Petroleum through ONGC predicted to be completed soon, that target could be easily outstripped. As of January 22, divestment proceeds stood at Rs 555 billion (Rs 55,500 crore). ONGC’s acquisition of HPCL’s fifty one in keeping with cent stake is valued at Rs 369 billion (Rs 36,900 crore). that could take divestment proceeds to Rs 925 billion (Rs ninety two,500 crore) for 2017-18.

the approaching 2018-19 budget, to be supplied by using Finance Minister Arun Jaitley, while no longer anticipated to be outright populist, will nonetheless comprise sops and spot an increase in allocation across schemes and public expenditure. he'll require resources, and disinvestment is anticipated to be a chief one.

Budget 2018: Time's running out for Modi to shore up rural voters' support

BUDGET 2018 - More than 60 people in Dhamaka, a village of about 230 families some 80 kilometers (50 miles) from India’s capital New Delhi, have received notices threatening to auction their fields. Singh urgently wants Prime Minister Narendra Modi’s government to provide debt relief, better prices for his crops and jobs for his sons when it unveils the annual fiscal budget on Feb. 1.

“I don’t know how to escape from this crisis,” Singh, 62, said this month while showing the notice to immediately repay Rs 247,296 ($3,886) he owes to the bank. While he previously voted for Modi, he’s unsure who will get his vote in the next national poll due early next year.

Time is running out for Modi to shore up the support of rural voters who underpinned his rise to power in 2014, when he won India’s biggest mandate in three decades. The budget will be the last opportunity for him to announce significant fiscal measures that could win back villagers like Singh.

Budget 2018: How Jaitley can help recycling sector create millions of jobs

BUDGET 2018 - The Indian financial system is seeing a extensive-based totally improvement throughout numerous sectors and is on course for a sturdy increase. but, as Finance Minister Arun Jaitley prepares finances 2018, the remaining full price range of the Narendra Modi led government earlier than the 2019 Lok Sabha elections, one foremost undertaking for the authorities in the Union finances 2018-19 could be making sure the advent of latest jobs and retaining the economic balance.

We agree with that the metal recycling and standard recycling industry can create tens of millions of jobs inside the country. The chinese authorities has put recycling as its pinnacle priority in its 5-yr Plan. It has created recycling parks and zones in the usa to enhance the industry.

via comparison, the recycling sector here in India has been neglected for a long term. now's time for our authorities to present a specific choice to the sector, which promises to not best keep the surroundings however also create thousands and thousands of direct and indirect jobs.

58% banks report rise in bad loans in July-December period, reveals Survey

BUDGET 2018 - The percentage of banks reporting a rise in non performing assets (NPAs) in July-December last year has reduced significantly, indicating stability in credit environment, according to a report.

The latest round of the Ficci-IBA survey drew responses from 19 public sector, private and foreign banks representing 59 per cent of the banking industry by asset size.

According to the survey, 58 per cent of the respondent banks reported a rise in NPAs, significantly lower than 80 per cent in the previous round. Infrastructure, metals and engineering goods were key contributors to the bad debt.

However, only 28 per cent banks reported a rise in the number of requests for the restructuring of loans as compared to 40 per cent in the previous round.

For the forthcoming Union Budget, the banks demanded full tax deduction on the NPA provisioning; reduction in corporate tax rate; and accelerated investments in infrastructure sector.

"Most of the responding banks have suggested reduction in corporate tax rate from 30 per cent to 25 per cent, lowering of MAT rate to 15 per cent and enhancing tax deductions and exemptions for individuals. This should boost credit demand at both corporate and retail level," said Ficci on the report.

Budget 2018: Cut Deficit, Lift Capex - Next Year's Budget Goal

India’s Finance Minister Arun Jaitley is likely to deliver mostly good news on fiscal consolidation when he unveils next year’s budget on Feb. 1. The government is set to overshoot its deficit target in the current year through March, largely due to lower dividend payments from the central bank. The proposed Budget 2018 for fiscal 2019 though, will look better -- for deficit reduction and investment plans.

The consensus view is that Jaitley has to choose between two competing goals: either purse its aim to cut the deficit to 3% of GDP, or boost investment needed to spur growth and reduce bottlenecks in the economy -- not both. Bloomberg Economics’ view is that the trade-off isn’t so stark. Sales of government-owned assets and increased revenue from goods and services tax reform mean Jaitley should be able to net sufficient revenue to meet both objectives.

BE expects the budget deficit to come in at 3.4% of GDP in fiscal 2018, down from 3.5% in the previous year. That would exceed the government’s target of 3.2%, reflecting lower-than-expected revenue as demonetization squeezed profits of the Reserve Bank of India and the GST dented growth. That would still be within a relaxed limit of 3.5% of GDP afforded by a review committee that gave the government more wiggle room on account of those major structural reforms. And for the year starting in April, the government should be able to stick to its original target for a deficit of 3% of GDP, as the reforms clear the way for faster growth and stricter compliance -- improving tax buoyancy.

Budget 2018: This is why Maharashtra's drought woes are likely to continue

BUDGET 2018 - In lots of approaches, the Lendi irrigation project near the Andhra Pradesh-Maharashtra border continues to be a prime example of the excruciating delays which have plagued irrigation projects in India.

Conceived in 1987, this predominant irrigation project turned into to be completed in 1992. The assignment involved constructing a dam on the Lendi river to shop over 6 trillion cubic metres of water before it joined the Manjira river, a tributary of the Godavari, the most important river of peninsular India. The mission being completed by using the Godavari Marathwada Irrigation improvement employer Ltd became at the beginning envisaged to be constructed on the price of half a billion rupees. but in 2016, government similarly pushed the completion date to 2020 with a revised price of Rs 14 billion. If the challenge is completed after 28 years of delay, it'll be part of 16 different such irrigation tasks in Maharashtra that have been placing fire for over  decades. a lot of these projects are inside the excessive drought-hit regions of Vidarbha and Marathwada in the state.

This shouldn’t were lots of a bother for Finance Minister Arun Jaitley, who receives set to give his government’s final full-fledged finances on February 1, 2018. however the truth that such behind schedule tasks dot Maharashtra could truly rankle the finance minister. records sourced from his ministry indicates that these multi-decade delays in finishing minor and major irrigation tasks throughout Maharashtra have value the government a whole lot of cash through the years. Out of a total of 29 irrigation tasks underneath construction in the country, 16 are delayed with huge time lags. these tasks that ought to have been completed at an expected cost of Rs 9 billion will now end up costing more than Rs 50 billion. And the destiny of those anticipated to be commissioned in 2018 nevertheless stays doubtful.

Budget 2018 must address these key issues to boost investment in infra

As India's Finance Minister is days away from presenting Budget 2018, there are two key issues that he must address to boost investment and growth in the country. They are: Non-tax revenues from land bank monetisation of public institutions, and full tax-exempt status for income from debt instruments issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in India.

The budget must pay attention to non-tax sources of revenues especially with a view to partially monetising the land banks of large public institutions such as the Indian Railways and the Airport Authority of India (AAI).

Land bank monetisation solves two core problems for India -- lack of available land for infrastructure and lack of financing for infrastructure. It also leads to productive use of an asset of great value that is lying idle. Land utilised for infrastructure will be land that will be used for productive purposes and therefore will create jobs, a much-needed requirement for a young and growing population.

Budget 2018: Steps to Stimulate the Manufacturing Sector

India’s recent soar of 30 positions on the benefit of doing commercial enterprise ranking via the sector financial institution is surely a welcome fashion. but nonetheless tons has to be completed; further reduce in pink tape, taking up hard reforms and identifying and disposing of bottlenecks are just a number of the steps which might be had to further cement India’s position as a beneficial and possible funding destination. A vibrant manufacturing zone is a need to for a vibrant economy and finances 2018 affords the FM with a completely unique opportunity to similarly push for reforms and improve the producing area. inside the past the government has said that it desires and expects 25% of the India’s GDP to come back from the producing sector via the year 2022, up from the current 16%. also under the PM Narendra Modi's Make in India scheme the authorities expects that the manufacturing sector will create 10 crore jobs by 2020. although in India the manufacturing sector has grown over the years but the growth has been slower while compared to the opponents within the neighborhood. by way of 2020, it's far expected that India will become the 5th largest manufacturing hub within the world. For India's production quarter to compete and outshine the likes of China a whole lot work will be required by way of the government within the Budget 2018-19.

Union Budget 2018: Impact on Smartphones in India

BUDGET 2018 - The complete state has their eyes set at the fifth and last complete-fledged Union finances in Narendra Modi’s government to be offered in Lok Sabha. This Union budget might be offered on February 1, 2018, via Mr. Arun Jaitley, our Finance Minister. This Union price range has a whole lot of significance as it's miles provided after two huge financial decisions made in Mr. Modi’s government- Demonetization and GST. The previous yr’s finances was also very unique as railway price range and fashionable finances have been offered on the same day.

every body is watching for a few statement to be made about their respective area on this Union price range. there may be anticipation that cellular telephones might also come to be inexpensive after February 1, 2018.

Union finances 2018: Smartphones to move inexpensive?
cellular phones are seen in each not unusual man’s possession, in particular teens. children is looking ahead to inexpensive handsets for use. The CEO and Director of COMIO Smartphones, Sanjay Kalirona stated that the GST must be decreased from 12%-five% and offer tax reductions to promote the mobile enterprise market in India. This have to assist in making mobiles less costly to the common man, specifically youngsters. all the industrialists are searching as much as Union finances’s help for applicable budgetary allocation for the boom of the cellular industry.

What startups want from Budget

BUDGET 2018 - The Indian economy is amongst the sector’s quickest-growing economies. This together with government’s persevered efforts to improve the benefit of enterprise has caused a begin-up revolution in India. The year 2017 witnessed funding of $13.7 billion across 820 offers in startups! but, the Indian startup surroundings still lags in the back of its peers in Silicon Valley and Israel.
The achievement of those startups largely relies upon on authorities policies, regulations and guidelines. With finances 2018 simply around the corner, there is lots on each startup’s want list.

access to smooth credit
The government had earlier installation a fund of Rs. 10,000 crore to offer financial assistance to startups. The authorities had also formulated a credit score guarantee fund with a corpus of Rs. 2000 crore to permit startups to elevate collateral loose loans up to Rs. 500 lakh per case. however those funds aren’t sufficient. on the ground degree, securing credit score remains now not very smooth for sparkling startups. there's a demand of the task plan and great documentation in conjunction with ensures and once in a while collateral too. price range 2018 can remedy this example through:

• Expediting the status quo of credit guarantee fund.
• establishing banks that particularly cater to disbursal of loans and financial management of startups.
• The government also can authorize a few nationalized and few private banks to feature verticals that solely service necessities of startups.

Budget 2018: Eyes on Arun Jaitley's announcements for rural sector

BUDGET 2018 - As Finance Minister Arun Jaitley gets right down to supply his 5th annual price range for the 2018-19 economic 12 months, all eyes will be on his announcements for the rural sector which is going via a downturn inside the previous few years.  consecutive droughts at the side of a sharp fall in earning have became agriculture unprofitable ensuing in big agitations in several components of the united states of america.

in line with some estimates, in the 2017 Kharif season on my own, an envisioned Rs 360 billion has been denied to farmers for no longer being capable of sell their produce on the state-mandated minimal help price (MSP). the autumn in farm incomes now not only threatens to dent the ruling BJP electorally but could also enhance a large query mark on the government’s promise to double earning through 2022.

on this attitude, enterprise fashionable looks at budgetary allocation for agriculture and allied sectors within the past few years below the UPA and primary years of the NDA together with agriculture increase in the course of these years.

The budget allocation for Ministry of Agriculture and allied activities, which includes the departments of agriculture studies and animal husbandry, has grown with the aid of 114% seeing that 2010-11, with a large bounce coming from 2016-17 after the authorities started including the expenditure incurred on hobby subvention on brief-term crop loans underneath the Ministry of Agriculture.

Budget 2018: Managers want Arun Jaitley to align tax cycle to calendar year

A Deloitte survey of pre-Budget 2018 expectations of managers on non-public income tax indicates that most provide a thumbs-up to aligning the tax 12 months with the calendar yr. Jurisdiction-unfastened e-assessment of tax returns, a gradual discount in private tax charges in keeping with modifications to the company tax structure and more suitable tax breaks for education of kids are among different key price range 2018 demands from Finance Minister Arun Jaitley.

Indian managers are keen to align the tax 12 months (April-March) with the calendar year (January-December), notwithstanding probabilities of initial hardships. In a survey of round 700-odd managers, a majority of respondents (eighty four in keeping with cent) need the Indian tax year to be modified from the financial year to the calendar 12 months. a bit over half (52 in keeping with cent) are in favour of bringing agricultural profits beneath the tax ambit. interestingly, one-1/3 of the respondents (33 in line with cent) did no longer conform to tax on agriculture income.

near -thirds (sixty four in keeping with cent) of the respondents gave an equivocal thumbs-as much as the concept of jurisdiction-unfastened e-evaluation. E-assessments are visible as a part of the tax branch's endeavour to expedite and simplify evaluation proceedings, lessen the taxpayer's inconvenience and stamp out corruption. but, 20 in keeping with cent of the respondents believe that this pass could not be beneficial. The ultimate sixteen consistent with cent aren't certain if this move could be of any help.

Budget 2018: Fear of outright populism overdone, say analysts

The contemporary market rally a month before the BUDGET 2018 proposals are introduced on February 1 is the satisfactory in over a decade, with the S&P BSE Sensex and the Nifty50 indices gaining over six in keeping with cent so far in calendar yr 2018 and crossing the 36,000- and eleven,000-levels, respectively, for the first time ever on Tuesday.

though most analysts do no longer anticipate the proposals to be hugely populist, brokerages might keep a close watch on how the government manages the fiscal scenario a 12 months earlier than the u . s . goes to polls scheduled in may additionally 2019, and modifications, if any, to the prevailing norms of long-time period capital profits tax (LTCG) on equities.

at the same time as analysts peg the financial deficit for FY19 to be round three.2 per cent, any trade to the LTCG tax structure on equities will be a sentiment damper, analysts say. accelerated allocation for infrastructure including lower priced housing, roads, railways, and ports is likewise feasible.