Budget 2018: Finance Minister Arun Jaitley is set to unveil the Modi government's budget on February 1. The fifth budget of the Modi government will focus on an array of issues. Since it is the last full budget before the 2019 Lok Sabha polls, the Modi government's Budget 2018 has raised many expectations.
Budget 2018: Finance Minister Arun Jaitley is set to unveil the Modi government’s budget on February 1. The fifth Budget of the Modi government will focus on an array of issues. Since it is the last full budget before the 2019 Lok Sabha polls, the Modi government’s Budget 2018 has raised many expectations. Announcement regarding the Income tax will be crucial. In Budget 2018, the Modi government should address the leave Travel Concession (LTC) exemption for employees, the Institute of Chartered Accountants of India (ICAI) said. While, there are expectations that income tax slab will raised, a decision on LTC will also be crucial in Budget 2018. Following the announcement of the Goods and Services Tax (GST), any announcement regarding direct tax will assume great significance.
“As per the provisions of section 10(5) of the Income-tax Act, 1961, an exemption of the value of leave Travel Concession/Assistance received by the employee from his employer is provided subject to fulfillment of prescribed conditions. Rule 2B provides for the specified conditions to be fulfilled,” the Institute of Chartered Accountants of India (ICAI) said. “One of the conditions is that the exemption can be availed only in respect of two journeys performed in a block of four CALENDER YEARS. The concept of Calendar year was introduced in the year prior to 1989 when there was no uniform Previous Year. Since 1989 uniform Previous Year has been introduced i.e. April – March,” the Chartered Accountants’ body said.
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In Budget 2018, the Modi government should change this, the body has suggested. “To be in line with the concept of financial year adopted by other provisions of the Income- tax Act, it is suggested that the concept of calendar year should be replaced with financial year (April – March) i.e. the calculation of block period shall be shifted from Calendar year to Financial Year,” ICAI noted in pre-budget memorandum.
Ahead of the Budget 2018, the central government had ordered on September 21 that central government employees would not get a daily allowance on LTC. The LTC allows the grant of leave and ticket reimbursement to employees who are entitled under the rules to travel to their home towns and other places. Employees were earlier entitled to an allowance which varied with their ranks.
The date for the Budget 2018 has been announced by the Modi government. The Union Budget 2018 will be presented by FM Jaitley. Notably, the budget 2017 was presented on February 1. This year too, the Modi government has chosen the same date for presentation of Budget 2018. It is likely that FM Jaitley will ‘rise to present’ budget 2018 at noon.
The Budget Session of Parliament is set to commence on January 29. President Ram Nath Kovind will address the joint sitting of the two Houses on January 29. The first phase of the session will be from January 29 to February 9. After a recess, Parliament will meet again from March 5 to April 6. There will be a recess between the session so that the department-related standing committees can clear the budgetary proposals related to their respective ministries.