This year in February, present Union government has announced its last full fledged budget before it goes for an election in Fy2019.
Budget didn’t meet the expectation of the masses not for the corporate as well. This was very much evident from the performance of the stock market. Nifty in a single day decelerated by whopping 300 point and Sensex by a large 1000 points making the fall by3.08% in and 2.99% in BSE, respectively. Indian Volatility index also rose to the whopping level by 31% in just one day, which indicated a high selling pressure. This fall was one of the biggest falls in the history of the stock market.
Though India is a democratic country, but even if you’re not very much happy with government, you really can’t do much about it, apart from electing some other leader in the next election.
That’s one different story of India. Let’s boil down to the main point how will the changes which came in through the BUDGET 2018-19, will affect the gains from stock market.
In the budget this year, after a gap of 14 years, government re-introduced LTCG ( long term capital gain) on income above Rs 1 lakh from sale of shares. Before the reinforcement of the LTCG, only 15% capital gain was taxed on the income earned within one year of investment. The change will come to effect from Sunday, 1st April.
Corporate got relief of 5% , as corporate tax is lashed down directly to 25% on business turnover of Rs250 crores and below, which in turn will boost the SME (small medium enterprises) , which accounts for almost 99% of the company’s filing their tax returns. This much needed boost came after two years of being promised in the year 2015.
Nothing for of masses. Mr. Jaitley neither gave any relief nor any gift to the masse. As the tax slabs remain unchanged as it is. But a palm full of water for the salaried person and pensioners with standard deduction at Rs 40,000, in lieu of the present exemption in respect of transport and medical expenses.
Budget 2018-19, did give some reasons for Senior citizen to curve their lips, with tax deduction on for critical illness will be Rs1 lakh, with effect from Sunday, which was earlier fixed at Rs60,000 and Rs80,000 , for senior citizen and very senior citizen , respectively.
Further increasing the disposal income on your books from 1st April is another exemption under 80D of the I-T Act, for or health insurance premium and medical expenditure, which will now be Rs 50,000 from Rs 30,000 exempted till Fy2017-18.
So all this will affect your ITR form next year, as this will be changes to be brought into your income tax calculation from 1st April,2018.