Major Takeaways - Budget 2018

2018 Budget: Tax Breaks for Farmers, 25% Rate for Small Firms, Senior Citizen Benefits, Long-Term Gains Taxed The 2018 budget introduced several key tax changes. Farmer producer companies received a 100% tax exemption for five years. The tax rate for companies with a turnover up to 250 crore was set at 25%. Salaried employees were granted a 40,000 standard deduction. For senior citizens, the interest on fixed deposits limit and medical insurance limit were raised to 50,000, and critical illness expenditure increased to 1 lakh. Long-term capital gains above 1 lakh on listed shares are taxed at 10%, with previous gains exempt. The total income tax cess increased to 4%, and electronic assessments were introduced. Custom duty on mobile phones rose, while educational cess on some goods decreased. (AI Summary)