#DecodingBudget: What the 2018 Budget means for you
What's the story
Despite excited speculation, the 2018 Budget has been a disappointment for the common man, who didn't get any major relief this time. Income tax slabs remained as they are and exemption limit wasn't raised. On the other hand, increase in customs duty and cess will only raise prices of mobile phones, televisions and more. Here's what the 2018 Budget means for you.
Benefits
New employees to get 12% PF from govt contribution
Here's the good news first: Finance Minister Arun Jaitley announced the government will contribute 12% PF for new employees in all sectors for three years. For women, PF contributions will be cut from 12% to 8% for the first three years. Senior citizens now have additional relief on income from bank interest (Rs. 30,000), investment in mediclaim (Rs. 50,000) and FDs (Rs. 50,000).
Data
More standard deductions for salaried taxpayers
For salaried taxpayers, the government has increased standard deduction from Rs. 15,000 to Rs. 40,000, a move likely to benefit 2.5cr taxpayers. This is in lieu of transport and medical reimbursement, which is worth Rs. 30,000. So the actual tax benefit would be Rs. 10,000.
Prices
Increase in customs duty and cess to drive up prices
Now for bad news. The government has proposed increasing customs duty on mobile phones from 15% to 20%, and on mobile and television parts to 15%. This is likely to drive up prices of these electronics. Not just these. All goods and services on which health and educational cess are levied will cost more from now, with rates being raised from 3% to 4%.
Information
No 'legal tender' status for cryptocurrency for now
If you thought you could make some extra income on the side by investing in the booming bitcoins, there's no chance for that either. Jaitley has warned against the use of cryptocurrency once again, reminding citizens that it is not legal tender.