The upcoming Union Budget 2018-19 will be the foremost post-GST budget in India and last full budget prior to 2019 general elections. This budget will be presented on 1st February 2018 by Arun Jaitley, Finance Minister of India. President Ram Nath Kovind addressed the joint session of houses and initiated the budget session. This budget will be 5th budget presentation by Arun Jaitley.
Almost every sector has loads of expectations on this budget session. There will be much touted economic reforms in this budget. The following details explain about what can be expected from this union budget.
Goods and Services Tax (GST)
The new goods and services tax regime will play the major role in this union budget 2018. We can expect some positive changes in the overall direct tax structure include, but not limited to the income tax.
Modi-led NDA government opines that the overall tax base throughout the country needs to be broadened to control tax evasion. Rationalized tax rates are vital. Direct taxes have to be modern further and match current requirements.
There will be loads of chances to develop new infrastructure in the country from this new budget. Arun Jaitley said that the union government wants to develop the rural infrastructure. The government has already approved the biggest highway development plan on the subject of Bharatmala Project.
There are ever-increasing requirements to discuss about the urban infrastructure, sanitation, housing, water and other important things. The upcoming union budget will include the railway budget. Railway sector requires the maximum investment in the railway infrastructure together with essential framework of trains and stations.
Public sector banks
There is an array of problems in the loans of public sector banks. Even though the government announced a mega recapitalization plan to counter such problems, this plan will be enhanced further in this union budget.
Many people in the banking and investment sectors these days have doubts about types of bonds and interest rates on such bonds. This is because the government has not yet shared such details. These things will be announced in the union budget.
Expectations of homebuyers
Home buyers in particular first time home buyers throughout the nation expect a lot on the upcoming union budget. This is because possibilities of expansion of housing for all scheme. The following tax reforms may be considered in the union budget 2018 for promoting the affordable housing scheme.
- Housing loss set-off limit Rs. 2 lakhs must be increased
- There must be excess deduction for pre-construction interest
- Delay in construction property
Incentives for the first time home buyers have to be increased further. The condition to avail this facility in recent times is the total value of the property must not exceed Rs. 50 lakhs regardless of location and size of the house.
You can clarify your doubts on taxability of sale of floor space index or transfer of development rights taxability in this union budget. Many tax payers have a dream to live in their own house. They can realize this dream when they avail the Housing For All scheme with some positive changes after union budget 2018.