The time for budget has
come yet again with the whole country viewing it with expectant eyes. The fact
that it is the last budget before general elections 2019, expectation levels
have gone up a notch higher. Budget 2018 was presented by Finance Minister Arun
Jaitley in Parliament on 1st
February, 2018 and covers a large
variety of topics. When a budget is tabled of this scale, it is but natural for
some to feel missed out and for some to leap with joy. Generally speaking, this
budget seems for the common man and revival of the economy. This is a simple letter
to a friend describing ones view about budget 2018. The article addresses the
question of properly presenting the letter to the concerned person. The letter
may be modified according to the situation and preference.
To
ABC
C/0
XYZ
Address
of ABC
Subject: My views regarding Budget 2018
Dear ABC,
I hope the letter finds you in the best of spirits. Today, I
am attempting to write a letter regarding my views on budget 2018 as it is the most eagerly awaited topic for some time now. Keeping in mind your interest in the topic, I am sure you would find it engaging and do feel free to contribute your views.
Hits
One of the biggest
points of the budget is the development of the nation’s infrastructure with a
total of 5.97 lakh crore allocated for infrastructure spending, compared to
4.94 lakh crore of the last fiscal year. This has a huge scope for job creation
and supporting Bharatmala programme.
The budget has
witnessed the biggest government funded health care system of the world. Under
the National Health Protection Scheme (NHPS), it is proposed to provide 5 lakh
per annum to 10 crore poor families in order to safeguard the health of the
poor. This is a bold initiative and would require a herculean effort to achieve
the target, completion of which should bring a huge smile on the face of the
poor, specially the rural sector.
There is also something
to cheer for the micro small and medium enterprises (MSME). The 2018 budget extends
the 25% corporate tax slab to firms
having turn-over of Rs 250 crore which till now was applicable to those with Rs
50 crore yearly turn-over. This literally helps in their development and job
creation.
Senior citizens have
benefitted more among the taxpayers as the deduction of interest income has been
raised from 10,000 to 50,000 on senior citizen bank and post office deposits.
It is a welcome move as the fixed deposit rates of bank and post offices, which
are the major savings destination for seniors, have been on the downtrend while
cost of living and medication is on the rise.
Misses
A standard deduction of
Rs 40,000 has been reintroduced for salaried taxpayers. This might have been
good news but the gains have been more or less nullified by removing the medical
and transport allowances. Moreover, the hopes of the taxpayers that the basic exemption
limit be raised to atleast Rs 3 lakh, has been dampened.
In the stock market, tax
on long-term capital gains from stock and equity fund has been re-introduced.
This has had a knee-jerk action as the stock market has crashed with investors
trying to book profit before the new LTCG tax becomes effective. However, it is
to be mentioned that the tax is marginal and should not affect small investors.
Hope, I
was able to throw some insight into budget 2018. I would love to hear your
views on the same. Do write to me whenever you can make time.
Yours truly
Your Name
Your Address
Date:
Place:
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