New Delhi: Finance Minister Arun Jaitley said that there will be no more changes in personal income taxation for individuals in the Budget 2018. Jaitley presented the the fifth full budget of this government in Lok Sabha today.
This in spite of the fact that salaried class paid more than individuals. Jaitley said in his speech that there was a significant widening in the tax net and as many as 85.51 lakh new taxpayers filed returns in 2017-18. The minister called this a general perception, and went to share data.
There’s been a 12.6% growth in direct taxes in 2017-18; 18.7% growth in indirect taxes in 2017-18. 5.51 lakh new taxpayers filed returns in 2017-18, as against 66.26 lakhs in 2016-17. The number has increased from 6.47 crore in 2016-17 to 8.27 crore by end of 2017.
Jaitley said, "individual incomes have a good salary, total tax collected from salary income was 1.44 lakh crore, an average of Rs 76,306 per individual tax person, while Rs 1.88 lakh crore was collected from individual businesses including individuals have paid 48,000 cr, an average of Rs 25283 per individual year."
But, there is relief considering standard deduction is back.
"In order to give relief, I propose to allow a standard deduction of Rs 40,000 for miscellaneous medical allowances," said Jaitley.
"Transport rates will be available for differently abled," he added.
There is a Tax relief for Senior Citizens too:
Tax relief for senior citizens
Corporates and SMEs will get the Long-term capital gains tax of 10 per cent on investments over Rs 1 lakh. Liberalised presumptive income schemes for small businesses with income below Rs 2 crore, similar schemes for professionals with income below Rs 50 lakh.
Some of the tweets, after the announcement are as follows:
Standard deduction re-introduced. Great relief for salaried.— Sandeep Parekh (@SandeepParekh) February 1, 2018
Rs 40000.00 standard deduction but Rs 35000.00 allowance taken away.— Gaurav Mashruwala (@GMashruwala) February 1, 2018
Standard deduction of Rs. 40,000 for everyone ! Transport allowance removed but only for disabled. (need some specifics)— Deepak Shenoy (@deepakshenoy) February 1, 2018