Budget 2018: How your money will be impacted By Rudra Investment Experts

In a week from now, the government would present the annual Union Budget By Rudra Investment Expert. This year's budget holds significance as it will be presented after assessing the impact of implementation of Goods and Services Tax (GST) which was implemented in July last year. Looking at General Elections 2019 in the forefront, this would be BJP-led NDA’s last budget before the polls.

In a bid to provide relief to the middle class, the government announced reduction in personal tax rate last year. For incomes ranging between Rs 2.5 lakh to Rs 5 lakh per year, the income tax rate was reduced to 5 per cent from 10 per cent. The tax filing process was further simplified by introducing a simple one page return form for people with annual income of up to Rs 5 lakh.

On the capital gains front, the government reduced the holding period of immovable property to two years from three years, thereby reducing the tax burden on property sellers keen to sell their immovable assets.

Tax Slabs

Rudra Investment Expert mentioned above, the government brought in relief for people with income between Rs 2.5 lakh to Rs 5 lakh. However, since higher income people or people with income above Rs 5 lakh are having a tough time dealing with inflation, they expect some relief in tax rates. They wish the government revisits tax rates for their income bracket, which may in turn infuse financial security and honest practices. Besides, there are expectations from the government to introduce tax slab of 30 per cent this year for people with income above Rs 12 lakh along with 20% tax rate on income between Rs 7 lakh and Rs 12 lakh. Income upto Rs 3 lakh should be exempted from filing tax and a 5% tax rate for income ranging between Rs 3 lakh and Rs 7 lakh. 

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