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TAXATION LAWS-
The impact of Budget 2018 on Agricultural sector, tax impact and impact of those changes on common man.
Budget 2018
Budget 2018 is presented by the Finance Minister Arun Jaitley, presenting the Modi government’s Budget 2018 in the Parliament. Arun Jaitley has not made much changes in the Budget 2018 Tax slab. Income tax in budget 2018 will remain the same as current slab. FM Jaitley said the common man will be getting the importance from the Modi government. The 2018-19 Union Budget, presented by Finance Minister Arun Jaitley on February 1, 2018, laid special emphasis on agriculture, small scale industry sectors, education, health and women. FM Arun Jaitley said that agriculture sector is the top priority for the government because the country’s economic growth is not “justifiable and equitable” unless the benefits are “clear and evident” in the farm sector. Therefore, the government’s priority is to ensure that the gains reach farmers. The Budget 2018 mainly contains 2 components:
Several outlays and schemes for the already existing sectors.
Also concentrates on the aspects of direct and indirect taxes.
BUDGET 2018 IMPACT ON AGRICULTURAL SECTOR
Days of the farmers are going to be changed as Arun Jaitley set INR 10-11 Trillion for “agricultural activities” and the price will be increased 1.5 times of the production cost which lead the farmers to make more profit. They will get benefited as the export of agricultural commodities are going to be liberalised. Smart farming is the only solution which help in increasing the quantity and quality of agricultural problems. The 3 factors that contribute to smart farming are agricultural automation, irrigation and drainage technology which can ensure sustainable and protected farming without affecting the environment.
Support price for produce
Its a big relief to farmers as Arun Jaitley announced the minimum support price (MSP) of Kharif crops like paddy at least 50% higher than the cost of production, while raising the farm credit target for the next fiscal by 10% to 11 lakh crores.
Allied sectors to get a boost
The government will set up aqua culture infra fund, and fisheries and animal husbandry infra fund with an outlay of 10000 crores. Cultivation of horticulture crops will bring advantage of large scale operations.
Livelihood Creation
Finance Minister Arun Jaitley announced various measures to benefit the farmers. Apart from employment due to farming activities and self-employment, this expenditure will create employment of 321 crore person days, 3.17 lakh kilometres of rural roads, 51 lakh new rural houses, 1.88 crore toilets, and provide 1.75 crore new household electric connections besides boosting agricultural growth.
Tax incentives
Arun Jaitley also announced tax incentives to promote post-harvest agricultural activities. To encourage professionalism in post-harvest value addition in agriculture, I propose to allow hundred per cent deduction to these companies registered as Farmer Producer Companies and having annual turnover up to Rs 100 crores in respect of their profit derived from such activities for a period of five years from financial year 2018-19.
- The minimum price for crops offered to farmers is going to be raised.
- More investment will come in the agricultural markets.
- More money will be pumped into rural sector, particularly in irrigation projects and aquaculture projects
- State governments are directed to spend more solar power produced by farmers with the help of solar-powered pumps. Many firms in the agriculture sector can benefit from this.
CHANGES IN INCOME TAX RULES
- Rupees 40000 standard deduction introduced
- Higher Cess
Income above 50 lakhs now with surcharge
If your income is above 50 lakhs now you must pay a surcharge of 10%.
No cash transactions above 3 lakhs
Transaction above 3 lakhs is not permitted in cash.
Buying and selling real estate
If you buy and sell real estate, you were subjected to a long-term capital gains tax, if you sold after three years. Now, the same has been reduced to two years. This is good news as short- term capital gains on shares applies for shares sold before one year, while there is no long- term capital gains tax.
Railway e-booking
The service tax on e-tickets booked through IRCTC, which will be withdrawn henceforth. So, you could now end-up save 15 per cent of the ticket amount, if you book online.
A focus on health care
The government is heavily focusing on health care. Budget 2017-18 aims to eliminate kala- azar, filariasis by 2017, leprosy by 2018, measles by 2020 and TB by 2025. Increased amount was marked for the healthcare sector, there were no major concessions that were forthcoming.
Key boost for Education
The government announcing a new AIIMS institute in the states of Jharkhand and Gujarat. There is a proposal to launch a system of measuring learning in schools. The emphasis in the future would also be on science education and flexible curriculum.
INTERPRETATION
Association Budget 2018: In Union Budget 2018, Finance Minister Arun Jaitley said that the administration had dependably been quick to improve its duty to the welfare of agriculturists and accomplishing the objective of multiplying rancher salary continuously 2022, by the 75th
year of Indian Independence. The Finance Minister watched that the strategy in the earlier decade remained creation driven. The Finance serve reported different measures to create higher wage, deliver more from same land, and acknowledge higher cost, and measures based on cultivate and non-cultivate wage. Most outstandingly, Arun Jaitley said that he needs agriculturists to procure 1.5 times the cost of their deliver. Government thinks about horticulture as an endeavour. The financial study additionally noticed that Agricultural R&D is the fundamental wellspring of advancement, which is expected to manage horticultural profitability development in the long haul. The real use of Department of Agricultural Research and Education/Indian Council of Agricultural Research has expanded from Rs 5,393 crore in 2010-11 to Rs.6800 (BE) crore amid 2017-18. The compound yearly development rate of use has been 4.2% throughout the years and as of late's use has been on higher side.
CONCLUISON
The budget 2018 announced by Financial Minister Arun Jaitley has really benefited the agricultural sector. Referring to the Government’s commitment to the welfare of farmers and doubling farmers’ income by 2022, the Finance Minister announced a slew of new schemes and measures. The budget has included many provisions and budget just for agriculture sector and to promote the growth of agricultural sector. The government has understood the value of promoting the agricultural sector. Positive steps in Healthcare (National Health Protection Scheme), Education & Agri (MSP up by 1.5x). Underwhelmed by light touch on manufacturing and infra. Personal income tax neutrality in line with expectations. Corporate tax relief is welcome. LTCG tax on equities came as the surprise. Bearish on crypto in India. Overall not bad (7/10), but gaps with respect to infrastructure and manufacturing is an issue. Also, must await details on implementation of various schemes & initiatives notably National Health Program, airport capacity, railways, tourism.
