Budget 2018 - Impact
This budget brings in key changes to equity investors & senior citizens. Salient points are presented below for quick reference. Only when the budget is blessed by both houses of the parliament, the effective date(s) of these changes will become firm. An across the board change in direct tax is revision of Education cess as "Education & Health Cess" from 3% to 4%. Investors Re-introduction of long term capital gains (LTCG) tax on equity shares and equity/equity-oriented mutual funds @ 10%. It covers Arbitrage funds, Balanced funds & Tax-saving ELSS funds as well. For shares, long term capital gains in excess of Rs.1 Lac from Jan 31, 2018 would be taxed at 10% Dividends on equity funds to be taxed at 10% as distribution tax - they are no longer free! 54EC capital gains tax savings scheme is now restricted only to capital gains from land & building. The lock-in period is also extended from 3 to 5 years. If you made a long term capital gain in debt mutual