Below is a summary of the significant announcements made in the Budget today, being updated on a real time basis:
1. Women employee’s contribution to Provident Fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 reduced to 8% for the 1st 3 years of employment. No change in employer’s contribution.
2. Indian Stamp Act to be amended for facilitating financial restructuring.
3. Separate policy for facilitating hybrid instrument to facilitate Investment in startups including foreign investments proposed.
4. Reduced corporate tax rate of 25% now extended to all companies with annual turnover of upto INR 250 Crores.
5. Standard deduction of INR 40,000 for salaried employees & pensioners permitted for reimbursement of transport and medical expenses.
6. Payment of more than INR 10,000 made in cash by trust shall be disallowed and subject to tax.
7. Long Term Capital Gains of more than INR 1 lakh to be taxed at the rate of 10% without benefit of indexation. All capital gains upto January 31, 2018 to be grandfathered.