Finance Minister Arun Jaitley presented the Union Budget 2018 in Parliament on 1 February 2018. This year, the Budget has been focused on agriculture, infrastructure and healthcare reforms in India. There are many infra and agricultural reforms and investment proposal made to support the cause.
Some of the highlights of the Budget impacting the income or taxes of an individual are highlighted below.
Currently, long-term capital gains (LTCG) from the sale of equity shares and equity-oriented mutual funds on which securities transaction tax (STT) has been charged on sell transactions are completely exempt from tax. In this year’s budget, there is a proposition to re-introduce long-term capital gains tax on gains arising from the transfer of listed equity shares exceeding Rs 1 lakh at 10%, without allowing any indexation benefit. Short-term capital gains arising due to transfer of shares within 12 months will continue to be taxed at 15%.
The Union government is drafting a new set of proposed labour reform with an approach to encourage and generate fixed-tenure employment or contract jobs.
The draft notification on fixed-term contracts is part of the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, and enables companies to hire workers for short-term assignments and terminate their services when projects are completed. The move, once implemented, is expected to allow for “free labour movement” and promote a hire-and-fire policy, overriding the existing retrenchment requirements. The draft policy is now open for discussion at the central government forum.
Currently, fixed-term employment is only allowed in the apparel manufacturing sector. The cabinet had recently said it could be extended to footwear, leather and the accessories sector to help "attract large-scale investments at a global scale."
Telangana & Haryana LWF payment has been made online from December 2017. From December 2017 onwards there will be no cheque/DD payment would be accepted for payment purpose.
|Due date||Nature of transaction||Existing rules||Mode|
|10th February 18||Andhra Pradesh & Madhya Pradesh||State-wise regulations||By Challan|
|15th February 18||Gujarat||Gujarat PT regulations||By Challan|
|20th February 18||Karnataka||Karnataka PT regulations||By Challan & Online|
|21st February 18||West Bengal||West Bengal PT regulations||By Challan|
|28th February 18||Assam & Orissa||State-wise regulations||By Challan|
|28th February 18||Maharashtra||Maharashtra PT regulations||Online|
|15th February 18||Remittance of Contribution||EPF & MP Act, 1952||Online|
|15th February 18||Remittance of Contribution (Main code and Sub codes)||ESIC Act, 1948||Online|
|7th February 18||TDS Payment||Income Tax Act, 1961||Online|
|Labour Welfare Fund Remittances|
|5th February 18||Kerala (Labour Welfare Fund Act)||Kerala State Labour Welfare Fund||Offline|
Sources: Government Notifications, Circulars, Press releases.
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