Budget 2018: The union budget noted that currently a deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum 240 days during the year.
Budget 2018: An outlay of a whopping Rs 14.34 lakh crore will be earmarked for projects towards creating livelihoods and infrastructure in the rural areas. Finance minister Arun Jaitley said apart from employment due to farming activities and self employment, the proposed investment will create employment to the tune of 321 crore person days, translating into 87,945 jobs each day for the entire 2018-19 across rural areas. The union budget noted that currently a deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum 240 days during the year.
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This has been relaxed to 150 days for the apparel industry. “In order to encourage creation of new employment, I propose to extend this relation to footwear and leather industry,” the FM said. The new Ayushman Bharat scheme, aimed at addressing health holistically, will also generate lakhs of jobs, particularly for women. The plan to introduce fixed-term employment across sectors will also boost creation of jobs even though there could be some element of seasonality into it, depending upon the need of the sectors such as plantation and mining. The proposal to extend the reduced corporate tax rate of 25% for MSMEs with annual turnover of up to Rs 250 crore from Rs 50 crore earlier is set to leave those into the sector with more investible surplus which, in turn, will create jobs.
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The tightening of indiscriminate imports on mobile phones and accessories by raising the customs duty to 20% from 15% earlier is also expected to boost more domestic production and with this, promotion of job creation. The MUDRA Yojana, that promotes access to institutional credit to small business units and entrepreneurs, will foster self-employment. The government has set a lending target of R3 lakh crore for 2018-19. Since the launch of the scheme in April 2015, institutions have sanctioned Rs 4.6 lakh crore in credit to 10.38 crore beneficiaries.