Equity through Education

My heart goes out for those who have no choice but to be submissive to others. I fear and loathe for those who act dominant on the weaker ones, not because they are smart and feel that they can overpower people but because they suppress the voice of others. This too without hearing their own inner self. Only because you are supposedly more powerful, it does not, NOT AT ALL, give you the liberty to do what you desire.

I am always disturbed by seeing injustice of this kind, anywhere or to anyone. I want to sound cynical, negative and sad on purpose because that’s how I feel inside and I want to remain the same, inside-out.

I always have this question for the dominant, “You may escape with your this attitude on this earth but how will you stand the justice of the God? Don’t you think, He will punish you for all your non-human deeds.” But where does the dominant care about God and all, he just wants to satisfy his ego, his false ego.

So, instead of trying to correct the dominant, the submissive should rise up. This brings me to a question.

Why is the submissive, submissive?

  • Fear of the dominant.
  • Dependency on the dominant.
  • Inferiority with the dominant.
  • Weaker than the dominant.
  • Supposedly, dumb than the dominant.

So, Are these things, true? Is this a fact? Will things ever change?

Is there a way out?

When these thoughts hover my mind, I get only ONE WORD answer


Education is very important for everyone, I will not say, only woman (most of the time suppressed) but all those who can be submissive or forced-to-be-submissive by the dominants of society. Because education is the only instrument that can act as an safeguard against the oppression, it is only with the help of education that the submissive will know that “you should raise your voice” or “the dominant has incorrect intentions in mind”. Education nurtures, liberates and empowers, when the suppressed gets educated the dominant loses power. When this happens the there is equity. There is Peace. There is abundance. There is Love.

Thus, in true sense Equity is possible only through Education.



A Difficult Person

If you think that everyone is wrong and you are always right. You are making yourself a DIFFICULT PERSON.

When you have something wrong to say about every good person or thing, You just might be a DIFFICULT PERSON.

If you have gradually become too hard to please. Beware, You are becoming a DIFFICULT PERSON.

When You argue about everything, even when there is no need for it. Be careful, you are becoming a DIFFICULT PERSON.

You know the reason why people do what they do…You pride yourself as a mind reader…Are you God? Of course, you are not; You are just a DIFFICULT PERSON.

If everyone around you walks on eggshells. They’d rather not talk to you…You are a DIFFICULT PERSON.

If you have a correction for everyone but none for yourself…You are a DIFFICULT PERSON.

If You never say I AM SORRY; or must be cajoled into saying it…You are a DIFFICULT PERSON.

If You are too adamant about forgiving others… You are a DIFFICULT PERSON.

Dearly Beloved, a DIFFICULT PERSON has to be very Careful; otherwise, at some point in your Journey, you might discover you are walking Alone.


Types of Difficult people
Identify Yourself, Please

Think About This, Please!

Union Budget 2018 Demystified

Union Budget 2018 Demystified

Our current Finance Minister (FM) is well known for breaking traditions while presenting the budget, this year, the tradition of using only English as the medium of presenting the budget was altered into bilingual speech with the use of English and Hindi combined. Even though English was prominent, many important announcements were made in Hindi, which of course is a great thing.

The speech started with stating Government’s visions and key practices that the Narendra Modi government has achieved or at least tried to achieve in the past 4 years of the NDA tenure. This was an important budget in light of the 2019 general elections and is the last complete budget of the current elected government. As speculated, it was mainly focused on the agricultural and rural economy along with the less privileged sector and senior citizen getting certain benefits. Healthcare, Infrastructure has been given a lot of importance, many major announcements are made in the same. (Major announcements are discussed later)

Major Direct Taxation aspects of the Finance Bill, 2018

The Finance Bill has not altered the Slab rate per se but there is some benefit in the form of Standard deduction to the salaried class of people.

The Important amendment of granting a Standard deduction of ₹ 40,000 to salaried persons is in lieu of (it is in place of / instead of) exemption of Transport allowance and exemption of medical reimbursement earlier allowed to salaried employees.

Transportation allowance is presently exempted @ ₹ 1,600 per month and medical reimbursement is exempted up to ₹ 15,000 per year so total 1,600*12 = ₹ 19,200 + ₹ 15,000 = ₹ 34,200 is already exempted as on date and instead of these two deductions /exemption standard deduction of ₹ 40,000 has been allowed. So net benefit of just ₹ 40,000 – ₹ 34,200 = ₹ 5,800 /- is what will additionally be available to the taxpayer. However, the private employees who were not eligible for any transport allowance and medical reimbursement will surely be able to avail the benefit ₹ 40,000 /- standard deduction completely. However, the transport allowance at enhanced rate shall continue to be available to differently-abled persons. Also, other medical reimbursement benefits in case of hospitalisation etc., for all employees shall continue.

The Education cess @ 2% and Higher Secondary Education Cess @ 1% is subsumed into a single cess called the Health and Education cess @ 4%. Thus, leading to an additional outflow of 1% cess on the amount of Tax and Surcharge.

The tax on Cooperative Societies, Firms/LLP, foreign companies has remained unchanged. Only domestic companies which have a turnover or gross receipts of 250 crores or less in the previous year FY 2016-17 will pay tax @ 25% instead of 30%. (Previously the limit of 250 crores was only 50 crore). However, the rate at which surcharge is applicable for all persons has remained unchanged.

Rate of Income Tax for Individual & HUF for FY 2018 – 19 (AY 2019 – 20)

Individuals (Below 60 years) and HUF Resident Senior Citizen* (60  to 80 years)

Resident very Senior Citizen* (Above 80 years)

Income Slabs Tax Rate Income Slabs Tax Rate Income Slabs Tax Rate
₹ 0 – ₹ 2,50,000 NIL ₹ 0 – ₹ 3,00,000 NIL ₹ 0 – ₹ 5,00,000 NIL
₹ 2,50,001 – ₹ 5,00,000 5% of the amount by which the total income exceeds ₹ 2,50,000/- ₹ 3,00,001 – ₹ 5,00,000 5% of the amount by which the total income exceeds ₹ 3,00,000/-
₹ 5,00,001 – ₹ 10,00,000 ₹ 12,500/- + 20 % of the amount by which the total income exceeds ₹ 5,00,000/- ₹ 5,00,001 – ₹ 10,00,000 ₹ 10,000/- + 20 % of the amount by which the total income exceeds ₹ 5,00,000/- ₹ 5,00,001 – ₹ 10,00,000 20 % of the amount by which the total income exceeds ₹ 5,00,000/-
Above ₹ 10,00,000 ₹ 1,12,500/- + 30 % of the amount by which the total income exceeds ₹ 10,00,000/- Above ₹ 10,00,000 ₹ 1,10,000/- + 30 % of the amount by which the total income exceeds ₹ 10,00,000/- Above ₹ 10,00,001 ₹ 1,00,000/- + 30 % of the amount by which the total income exceeds ₹ 10,00,000/-

Total Income Surcharge Applicable
Below ₹ 50,00,000 NIL
₹ 50,00,000 – ₹ 1,00,00,000 10%
Above ₹ 1,00,00,000 15%

Health & Education Cess @ 4% (Previously was 3%, now Increased) It will be computed on the aggregate of Income-Tax and Surcharge.

Rebate** of ₹ 2,500/- (Maximum) – If Total Income is up to ₹ 3,50,000/-   (Section 87A)

* The benefit of the Senior citizen is applicable only for Resident Individuals as per section 6 of Income Tax Act, 1961. Therefore, the Non-resident senior citizen is not covered and shall be liable to pay tax as per provisions applicable for Individual (Below 60 years) and HUF.

# Surcharge will be applicable over and above Normal Slab Rate Taxes (Only if Total Income exceeds the mentioned limits) otherwise, it won’t be applicable.

** Rebate will be applicable only in the cases where the Total income is up to ₹ 3,50,000/-, in such cases there will be a rebate of maximum ₹ 2,500/- allowed or the tax payable, whichever is lower.

TOTAL INCOME: The sum of all money received, under each head of income, by an individual or organization, which is reduced by the deductions applicable (under Chapter VI-A) is called total income.

Special Benefits for Senior Citizens

To care for those who cared for us is one of the highest honors.
                                                                                                             – Arun Jaitley

  1. Under Section 80D – Health Insurance Premium and Medical Treatment, the deduction of ₹ 30,000/- were applicable to the Senior citizen which has been enhanced to ₹ 50,000/- for the AY 2019-20.
  2. Under Section 80DDB – Enhanced deduction to senior citizens for medical treatment of specified diseases which was ₹ 60,000/- in case of senior citizen and ₹ 80,000/- in case of very senior citizen has been uniformly been enhanced to ₹ 1,00,000/-
  3. Under Section 80TTA – Interest Income from Saving Accounts of ₹ 10,000/- is deductible from tax. For Senior Citizen a new Section 80TTB has been inserted to provide a deduction of ₹ 50,000/- in place of ₹ 10,000/- from AY 2019-20.
  4. Under Section 194A – TDS from Interest Income has been amended for Senior citizens only. The threshold of ₹ 10,000/- has been increased to ₹ 50,000/-. Therefore, any Interest getting accrued or paid from 1st April 2018, for senior citizen shall not attract TDS up to ₹ 50,000/-.
  5. Standard Deduction of ₹ 40,000 shall also be applicable to Senior citizens also in lieu of Transport allowance and Medical reimbursement. However, the transport allowance at enhanced rate shall continue to be available to differently-abled persons. Also, other medical reimbursement benefits in case of hospitalisation etc., for all employees shall continue.


Corporate Taxes Rates Tax FY 2018 – 19 (AY 2019 – 20)




Type of Tax Nil to 1 crore 1 crore to 10 crores 10 crores to 250 crores Exceeding 250 crores
Domestic Company Basic Rate 25% 25% 25% 30%
Surcharge 0% 7% 12% 12%
H&E Cess 4% 4% 4% 4%
Effective Tax 26% 27.82% 29.12% 34.944%
Foreign Company Basic Rate 40% 40% 40% 40%
Surcharge 0% 2% 5% 5%
H&E Cess 4% 4% 4% 4%
Effective Tax 41.6% 42.432% 43.68% 43.68%
Firm / Local Authority / Cooperative Society Basic Rate 30% 30% 30% 30%
Surcharge 0% 12% 12% 12%
H&E Cess 4% 4% 4% 4%
Effective Tax 31.2% 34.944% 34.944% 34.944%

FM has reduced the Domestic Companies tax rate to 25% from 30% for the companies which have turnover up to 250 crores. (MSME Tax) This shall include 99% of companies. Only XL companies will have to bear the tax at the old rate. Since there is no change in the surcharge applicable, therefore it remains as per previous finance acts. Instead of 3% cess of EC & HSEC, there will be a single Health and Education Cess of 4% applicable.

NOTE: Provisions like MAT, AMT and Marginal relief are applicable without any change.

Section 112A – Taxation of Long-Term Capital Gains

Currently, long-term capital gains arising from a transfer of listed equity shares or units of equity-oriented fund or units of business trusts, (assets held for a period of more than one year) are exempt from income-tax under Section 10(38) of the Act. The exemption u/s 10(38) will come to an end from 1st April 2018, therefore any capital gains till 31.03.2018 will continue to remain exempt. As per newly proposed Section 112A, long-term capital gains arising from a transfer of an equity share, or a unit of an equity-oriented fund or a unit of a business trust shall be taxed at 10% of such capital gains. Such capital gains tax shall be levied in excess of ₹ 1 lakh. This concessional rate of 10% will be applicable if STT has been paid on both acquisition and transfer of such capital asset, in case of equity shares, and paid at the time of transfer in case of a unit of an equity-oriented fund or a unit of a business trust.

The concept of Grandfathering was introduced while levying the tax on LTCG on above-mentioned shares and securities, which means to exempt something from the new law or regulation. Therefore, any gains made up to 31st March 2018 would be totally exempt. This tax comes into force for all sales happening from 1st April 2018 and the shares and securities being Long-term capital assets. The long-term capital gains shall be computed without giving effect to the first and second provisos to section 48, i.e. inflation indexation in respect of the cost of acquisitions and improvement if any, and the benefit of computation of capital gains in foreign currency in the case of a non-resident, will not be allowed.

     Full value of Sale Consideration XXX  
Less: Transfer Expenses (XX)  
     Net Consideration   XXX
Cost of Acquisition    
a.      Actual Cost of Acquisition XXX  
b.      FMV as on 31.01.2018* XX  
c.       Amount of sale consideration XX  
d.      Lower of (b) or (c) XX  
Cost of Acquisition – Higher of (a) or (d)   (XXX)
Capital gains taxable u/s 112A   XXX

* The Fair Market Value (FMV) of a listed equity share shall mean its highest price quoted on the stock exchange on January 31, 2018. However, if there is no trading in such shares on such exchange on January 31, 2018, the highest price of such asset on such exchange on a date immediately preceding January 31, 2018. While in case of units which are not listed on the recognized stock exchange, the net asset value of such units as on January 31, 2018, shall be deemed to be its FMV.

If the Capital gains taxable u/s 112A is up to ₹ 1,00,000/- then there will be no tax payable. However, if the amount of gain exceeds ₹ 1,00,000/- then the tax will be payable on the gain above ₹ 1,00,000/-.

The deduction under Chapter VIA shall not be allowed for the purpose of payment of capital gains tax u/s 112A. However, the benefit of Rebate u/s 87A shall be allowed before calculating tax u/s 112A.

Very old Shares which were purchased without payment of STT (Purchased when STT was not applicable) in such cases whether the grandfathering clause will be applicable or not is a question which awaits clarity. 

NOTE: In case of Capital loss, whether the set off will be allowed to be carried forward or not is not is not explained. Going by the principles of Set off provisions, if a gain is taxable then any loss arising out of the same nature of income would be allowed to be set off. But if the gain is tax-free then any loss of such nature cannot be set off. However, this scheme of calculation, where the base of acquisition of the asset is getting shifted, should the loss be allowed or not. This can lead to fresh litigation and therefore to avoid this, the government is expected to clarify its stand soon.

Further, the complication can increase in the case of Bonus issues or rights issues of shares.

Therefore, presently the Capital gains on Long-Term Shares can be summed up as:

Nature of Shares Rate of Tax (%)
Resident Investor Non-Resident Investor
Unlisted Shares 20% 10%
Listed Shares (Sold off the Market) 10% / 20%** 10%
Listed Shares (STT paid* on Sale and Purchase) 10% 10%
* Rate of Tax applicable only for gains exceeding ₹ 1,00,000/- and government is to notify acquisitions in respect of which STT shall not apply.

** After applying Indexation.

These amendments will take effect from 1st April 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

Section 115AD – Long-Term Capital Gains in case of Foreign Institutional Investors (FIIs)

Consequent to the proposal of withdrawing the exemption u/s 10(38) of Long-term capital gains, such Long term Capital gains in excess of ₹ 1,00,000/- shall be taxable in the hands of FIIs at the rate of 10% u/s 115AD.

Section 115R – Dividend distribution tax on dividend payouts to unitholders in an equity-oriented fund

Under existing provision Section 115R – any income distributed to a unitholder of equity-oriented funds is not chargeable to tax. To provide a level playing field between growth-oriented funds and dividend paying funds, it is proposed to amend the said section to provide that where any income is distributed by a Mutual Fund being, an equity-oriented fund, the mutual fund shall be liable to pay additional income tax at the rate of 10% percent on income so distributed.

This amendment will take effect from 1st April 2018.

Rationalization of section 43CA, section 50C and section 56

At present, while taxing income from capital gains (section 50C), business profits (section 43CA) and other sources (section56) arising out of transactions in immovable property, the sale consideration or stamp duty value, whichever is higher is adopted.

The difference is taxed as income both in the hands of the purchaser and the seller.

It is proposed that No adjustment needs to be made to the full value of consideration in based on stamp duty valuation if the variation is within the range of 5% of sales consideration.

The corresponding amendment in section 43CA, 50C and 56 are made.

These amendments will take effect from 1st April 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

Rationalisation of provision relating to conversion of stock-in-trade into Capital Asset

Currently, section 45(2) covers conversion of Capital Assets into Stock in Trade. (Post the landmark judgement of “CIT vs. Bai Shirinbai K. Kooka

But surprisingly, the reverse scenario was not covered in the tax net and in this budget it has been proposed to be brought under tax net i.e. conversion of Stock in Trade into Capital Assets.

Section 28 is also amended so as to provide that any profit or gains arising from the conversion of inventory into a capital asset or its treatment as capital asset shall be charged to tax as business income.

The fair market value of the inventory on the date of conversion shall be deemed to be the full value of the consideration received.

Consequently, corresponding amendments proposed in Section 2(24), 2(42A) & 49.

Rationalisation of provision of Section 54EC

Section 54EC of the Act provides that capital gain, arising from the transfer of a long-term capital asset, invested in the long-term specified asset at any time within a period of six months after the date of such transfer, shall not be charged to tax subject to certain conditions specified in the said section.

The scope of this section now proposed to restrict only to “long-term specified asset” being land or building or both.

It is also proposed to provide that long-term specified asset, for making any investment under the section on or after the 1st day of April, 2018, shall mean any bond, redeemable after five years (The period of holding (lock-in) enhanced from present level of 3 years to proposed 5 years.) and issued on or after 1st day of April, 2018 by the National Highways Authority of India or by the Rural Electrification Corporation Limited or any other bond notified by the Central Government in this behalf.

This amendment will take effect, from 1st April 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

Other Important Direct Tax Proposal in the Union Budget

Deductions in respect of certain incomes not to be allowed unless return is filed by the due date

Existing provisions contained in the section 80AC of the Act provide that no deduction would be admissible under section 80IA, 80IAB, 80IB, 80C, 80ID and 80IE unless the return of income by the assessee is furnished on or before the due date specified under subsection 139(1).

It is proposed to extend the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading C – “Deduction in respect of certain incomes” in chapter VIA.

Other deductions in Chapter VI-A continue to be allowed.

Farm Produce Companies

Farm Producer Companies (FPC), having a total turnover up to ₹ 100 Crore shall eligible to deductions u/s 80P.

The benefit shall be available for a period of five years from the financial year 2018-19.

This amendment will take effect from 1st April 2019 and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years.

Measures for Promoting Start-ups u/s 80-IAC

Section 80-IAC of the Act provides that deduction under this section shall be available to an eligible start-up for 3 consecutive AY out of 7 years at the option of the assessee.

In order to improve the effectiveness of the scheme for promoting start-ups in India, it is proposed to make following changes.


The amendment will take effect, from 1st April 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

Application of Dividend Distribution Tax to Deemed Dividend u/s 2 (22) (e) – Now Taxable to Companies Only

At present dividend distributed by a domestic company is subject to dividend distribution tax payable by such company. However, deemed dividend u/s 2 (22) (e) is taxed in the hands of the recipient at the applicable marginal rate. The taxability of deemed dividend in the hands of the recipient has posed a serious problem of the collection of the tax liability and has also been the subject matter of extensive litigation.

Proposed to delete the Explanation to Chapter XII-D occurring after section 115Q of the Act

Now DDT chargeable u/s 115-O also include dividend u/s 2 (22) (e) in the hands of company @ 30% (without gross-up).

Proposed DDT structure –

Dividend covered u/s 2 (22) (a) to (d) DDT @ 15% (with grossing up)
Dividend covered u/s 2 (22) (e) DDT @ 30% (without grossing up)

Tax neutral transfers

Section 47 provides for certain tax neutral transfers, which includes the transfer of capital assets between the wholly owned subsidiary company and its holding company.

However, no corresponding provision was available in statute book in section 56 under the head “Income from Other Source”

Accordingly, in order to further facilitate the transaction of money or property between a wholly owned subsidiary company and its holding company, it is proposed to amend the section 56 so as to exclude such transfer from its scope.

This amendment will take effect, from 1st April 2018 and shall accordingly, apply in relation to the transaction made on or after 1st April 2018.

Quoting of PAN

It is proposed to use a PAN as Unique Entity Number (UEN) for non-individual entities which enter into a financial transaction of an amount aggregating ₹ 2,50,000 Lakh or more in FY.

In order to link the financial transactions with the natural persons, it is also proposed that the managing director, director, partner, trustee, author, founder, Karta, chief executive officer, principal officer or office of such entities shall also apply for PAN u/s 139A.

Penalty for failure to furnish statement of financial transaction or reportable account u/s 285BA

Penalty Existing Penalty Proposed Penalty
Failure to furnish statement of financial transaction or reportable account within the prescribed time ₹ 100 / day ₹ 500 / day
Failure to furnish the statement of financial transaction or reportable account within the period specified in the notice ₹ 500 / day ₹ 1,000 / day

These amendments will take effect from 1st April 2018.


Recent judicial pronouncements had raised doubts about the legitimacy of the notified ICDS.

In order to regularise the compliance with the notified ICDS by a large number taxpayer so as to prevent any further inconvenience to them, this Union Budget has proposed many amendments in the existing law and inserted new sections for smooth compliance with the ICDS.

  • Marked to market loss computed as per ICDS to be allowed under section 36.
  • Gain or loss on Foreign Exchange as per ICDS to be allowed under new section 43AA.
  • Construction Contract income to be computed on percentage completion method as per ICDS.
  • Valuation of Inventory including Securities to be as per ICDS.
  • Interest on compensation, enhanced compensation. Claim or enhancement claim and subsidy, incentives to be taxed in the year of receipt only as per new Section 145B.
  • Conversion of stock in trade to a capital asset to be charged as business income in the year of conversion on Fair Market value on the date of conversion.

It is proposed to bring the amendments retrospectively with effect from 1st April 2017 i.e. the date on which the ICDS was made effective and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.

Major Indirect Taxation aspects of the Finance Bill, 2018

Amendments to the Customs Act, 1962

  • Scope of Customs Act amended to include any offence or contravention committed thereunder outside India by any person
  • Definition of term “assessment” and “re-assessment” has been expanded significantly to include factors such as classification, valuation, exemption or concession, quantity, weight & measure, origin and any other specific factor which impact the computation of Customs duty.
  • The limit of ‘Indian Customs Waters’ into the sea from the existing ‘Contiguous zone of India’ has been extended to the ‘Exclusive Economic Zone (EEZ)’ of India.
  • Verification of self-assessed imported goods shall be based on a risk-based selection Criteria.
  • Provisional assessment of duty would also cover export consignments.
  • Provision to exempt goods imported for repair, further processing of manufacture from payment of Customs Duty introduced, similar provisions inserted for re-import of exported goods as well.
  • Pre-notice consultation to be held with assessees in cases not involving collusion, willful mis-statement, suppression before issuing of demand notice.
  • Provision for issuance of supplementary show-cause notice introduced subject to specified timelines and circumstances
  • Adjudication of notices to be completed within prescribed timelines
    • 6 months for notices issued under normal limitation period
    • 1 year for cases involving collusion, willful mis-statement, suppression. Time limit extendable up to 6 months / 1-year subject to approval from the higher authorities.
  • Proceedings of a show-cause notice shall be deemed to be concluded if adjudication not completed within specified prescribed timelines
  • Definition of “Advance Ruling” expanded to cover subjects beyond the mere determination of duty.
  • Advance Ruling can now be obtained in respect of taxes apart from duties either under Customs Act or any other law for the time being in force.
  • Time limit to pronounce Advance Ruling reduced from 6 months to 3 months
  • Customs authorities or applicant authorized to file appeal against a ruling passed by the Advance Ruling authorities within 60 days from the date of communication of the ruling – extendible up to 30 days
  • Presentation of Bill of entry/Shipping Bill/Bill of export can also be made through Customs
  • Automated System for import and export of goods
  • Provision for advance payment of duty under Electronic Cash Ledger introduced
  • Audit provisions introduced under the Customs Act
  • New Section inserted regarding a reciprocal arrangement for exchange of information between India and any other country in connection with specified Customs matters.
  • Social Welfare Surcharge (SWS) introduced, as Customs duty, on all imported goods:
    • 3% on import of Petrol, HSD, Silver and Gold
    • 10% of all other imported goods (except goods which were hitherto exempt from EC and SHEC)

         Ad-valorem rate of SWS will be on the aggregate of Customs Duty (excluding IGST,           GST compensation cess, Anti-Dumping Duty, Safeguard Duty, etc.)- essentially on BCD.

  •     BCD rationalization at 7.5% for various Refractory items.
  • Motor Spirit and Petroleum Products
    • Basic Excise duty on manufacture of Motor Spirit and HSD reduced by Rs. 2/- per litre
    • Road cess of Rs. 6 per litre on petroleum products abolished
    • Road and Infrastructure Cess (R & I Cess) on petroleum products of Rs. 8 per litre Introduced.
    • Additional Duty of Customs levied on import of Motor spirit and HSD abolished.

Major Rate Changes in Customs

Description Existing BCD Rate Proposed BCD Rate Future Price Indicator
Specified Radial tyres (Bus and Truck) 10% 15% Costlier
Specified parts of motor vehicles 7.5% -10% 15% Costlier
CKD parts of motorized four and two Wheelers 10% 15% Costlier
CBU Import of Motor vehicle 20% 25% Costlier
Diamond and Precious Stones
Specified Diamond 2.5% 5% Costlier
Coloured gemstones 2.5% 5% Costlier
Capital Goods and Electronics
PCBA for chargers of Mobile Phones Nil 10% Costlier
Silica (used for Telecom / optical fibre cables) Nil 5% Costlier
Specified Parts for Mfg. of Panels of LCD/LED TV Nil 10% Costlier
Solar tempered glass for Mfg. of solar cells 5% Nil Cheaper
Inputs for manufacture of PCBA or moulded plastics for chargers of Mobile Phones Applicable Rate Nil
Specified Inputs for Manufacture of CNC Machine Tools 7.5% 2.5% Cheaper
Electronic products
Cellular mobile phones 15% 20% Costlier
Specified parts and accessories of cellular mobile phones 7.5% – 10% 15% Costlier
Smart watches 10% 20% Costlier
LCD/LED/OLED panels and their parts 7.5% / 10% 15% Costlier
Video games 10% 20% Costlier
Watches and Clocks
Watches and clocks including stopwatches and alarm clocks 10% 20% Costlier
Specified footwear 10% 20% Costlier
Specified parts of footwear 10% 15% Costlier
Miscellaneous Items
Specified Parts of Furniture 10% 20% Costlier
Sunglasses 10% 20% Costlier
Imitation jewellery 15% 20% Costlier

Major Non-Taxation Announcement in the Finance Bill, 2018

Health Care

The announcement of Universal Health Coverage programme by launching a flagship National Health Protection Scheme to cover over 10 crore poor and vulnerable families (approximately 50 crore beneficiaries) providing coverage up to 5 lakh rupees per family per year for secondary and tertiary care hospitalization. This is the most cheered thing of the budget, making it the aam aadmi budget, now the only concern is the smooth implementation of this programme and how the benefit will reach the required masses is still not very clear.  Creating the awareness among the beneficiaries is the key to its success. Additionally, there shouldn’t be any procedural complexities while taking the benefit of this scheme of government by the people. Therefore, Implementation will hold the key here.


With the Prime Minister strong desire to double the farmer’s income by 2022, the government had already set the major rabi crops Minimum Selling Price (MSP) at 1.5 times their cost of production. Now, in the budget, the government has decided to implement this resolution as a principle for the rest of crops. The government has decided to keep MSP for the all unannounced crops of Kharif at least at one and half times of their production cost. This decision will prove to be an important step towards doubling the income of our farmers. However, the fool-proof mechanism of deciding what will be the adequate cost of production for every crop, whether will it differ state wise or not are some of the questions that the Niti Ayog, in consultation with Central and State Governments will have to decide upon. Additionally, this will not give any immediate relief to the farmer community since the Kharif crops are grown from July to October and sold thereafter. So, the government needs to come out with all possible answers of the agricultural community and offer them the fair deal as promised in the budget.

The Government is keen in improving conditions of farmers by providing better warehousing conditions, connecting APMC’s to e-NAM (National Agriculture Market), allocating ₹ 2,000 crores for agri-market infrastructure fund, developing Grameen Agricultural markets. The FM in his speech has stated the need for developing a cluster-based method for farming in more scientific manner, Organic farming, setting up long-term irrigation fund and many other allocations for specific purposes. How many of this sees the light of the day will be an interesting thing to witness. Successful implementation of these things at a scale which can make a difference will require coordination and cooperation from different stakeholders.

Other Important Announcements in Budget Speech

  • GDP growth at 6.3% in the second quarter signalled turnaround of the economy.
  • India is expected to grow at 7.2% to 7.5% in the second half (October – March)
  • Exports grew by 15% in 2017-18.
  • India is now firmly on course to achieve high growth of 8% plus.
  • More than 800 medicines are being sold at a lower price through more than 3 thousand Jan Aushadhi Centres.
  • The government will aim to double farmers’ income by 2022.
  • In the year 2016-17 India achieved a record food grain production of around 275 million tonnes and around 300 million tonnes of fruits and vegetables.
  • Food Processing sector is growing at an average rate of 8% per annum
  • Prime Minister Krishi Sampada Yojana is our flagship programme for boosting investment in food processing. Allocation of Ministry of Food Processing is being doubled from ₹ 715 crores in the year 2017-18 to ₹ 1,400 crores in the year 2018-19.
  • India’s agri-exports potential is as high as US $ 100 billion against current exports of US $ 30 billion.
  • FM announce setting up a Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector and an Animal Husbandry Infrastructure Development Fund (AHIDF) for financing infrastructure requirement of animal husbandry Total Corpus of these two new Funds would be `10,000 crores.
  • Prime Minister’s Ujjwala Scheme to make poor women free from the smoke of wood. With the successful implementation of Ujjwala scheme and its popularity among the women, FM proposes to increase the target of providing a free connection to 8 crore poor women.
  • Prime Minister Saubhagya Yojana for providing electricity to all households of the country, four crores poor households are being provided with electricity connection free of charge. We are spending `16000 crores under this scheme.
  • Loans to Self Help Groups of women increased to about ₹ 42,500 crores in 2016-17, growing 37% over previous The proposed growth estimate is that loans to SHGs will increase to ₹ 75,000 crores by March 2019.
  • Technology will also be used to upgrade the skills of teachers through the recently launched digital portal ‘‘DIKSHA’’.
  • To step up investments in research and related infrastructure in premier educational institutions, including health institutions, a major initiative named ‘‘Revitalising Infrastructure and Systems in Education (RISE) by 2022’’ with a total investment CAPEX of ₹ 1,00,000 crore in next four years was announced.
  • National Health Policy, 2017 has envisioned Health and Wellness Centres as the foundation of India’s health system, FM announced ₹ 1,200 crores in this budget for this flagship These centres will provide comprehensive health care, including for non-communicable diseases and maternal and child health services. These centres will also provide free essential drugs and diagnostic services.
  • FM has allocated additional ₹ 600 crores to provide nutritional support to all TB patients at the rate of ₹ 500 per month for the duration of their
  • FM announced that government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years Also, the facility of fixed-term employment will be extended to all sectors.
  • To incentivise women employment, FM has proposed to reduce women employees’ contribution to 8% for first three years of their employment against existing rate of 12% or 10% with no change in employers’
  • 306 Pradhan Mantri Kaushal Kendra has been established for imparting skill training through such centres.
  • Smart Cities Mission aims at building 100 Smart Cities with state-of-the-art FM inform that 99 Cities have been selected with an outlay of `2.04 lakh crore.
  • The AMRUT programme focuses on providing water supply to all households in 500 State level plans of ₹ 77,640 crores for 500 cities have been approved. Water supply contracts for 494 projects worth ₹19,428 crores and sewerage work contract for 272 projects costing ₹12,429 crores have been awarded.
  • Bharatmala Pariyojana has been approved for providing seamless connectivity of interior and backward areas and borders of the country to develop about 35000 km in Phase-I at an estimated cost of ₹ 5,35,000
  • Railways’ Capex for the year 2018-19 has been pegged at ₹1,48,528 A large part of the Capex is devoted to capacity creation.  18,000 kilometres of doubling, third and fourth line works and 5000 kilometres of gauge conversion would eliminate capacity constraints and transform almost entire network into Broad Gauge.
  • Redevelopment of 600 major railway stations is being taken up by Indian Railway Station Development Ltd. All stations with more than 25,000 footfalls will have escalators.  All railway stations and trains will be progressively provided with wi-fi.  CCTVs will be provided at all stations and on trains to enhance the security of passengers.
  • President’s Salary to be enhanced to ₹ 5,00,000/- per month, Vice-president’s Salary to be enhanced to ₹ 4,00,000/- per month and Governor’s Salary to be enhanced to ₹ 3,00,000/- per month.
  • FM proposed changes in the salary, constituency allowance, office expenses and meeting allowance payable to Members of Parliament with effect from April 1,  2018. The law will also provide for automatic revision of emoluments every five years indexed to inflation.
  • FM revised the Fiscal Deficit estimates for 2017-18 are ₹ 95 lakh crore at 3.5% of GDP. FM projected a Fiscal Deficit of 3.3% of GDP for the year 2018-19.
  • All companies irrespective of income to file a return and in case it is not filed, such companies will be liable for prosecution irrespective of the fact whether it has the tax liability of Rs 3,000 or not.
  • Assessments to be E-assessment under new section 143(3A)
  • No adjustment under section 143(1) while processing on account of the mismatch with 26AS and 16A.
Budget profile
Allocation of ₹ in Lakhs



This document is intended for knowledge sharing purpose only. All efforts have been made to ensure the accuracy of information in this publication. The information contained in this document is published for the knowledge of the recipient but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. The publication is a service to all recipients only to provide an overview of the Union Budget Proposals and shall not be construed as professional advice or an authoritative opinion. Whilst due care has been taken in the preparation of this publication and information, I am not responsible for any errors that may have crept in inadvertently and do not accept any liability whatsoever, for any direct or consequential loss howsoever arising from any use of this publication or its contents or otherwise arising in connection herewith.

(Compiled by CA. Siddharth P. Jani, for any queries/suggestion or rectifications kindly write at casiddharthjani@gmail.com)

Sydenham – The Change in the Air

Sydenham – The Change in the Air

(This was written on completion of Sydenham College’s Glorious 100 years (in 2013) as an Educational institute in serving, helping, blossoming every child in a unique way.)

There is an age-old adage that “The only thing Constant in this world is Change.” Let it be any living or non-living being, mind or matter or anything else, nothing stays forever, everything what takes birth or is built, sooner or later comes to an end; therefore, the characteristic of everything remains the same of rising and sooner or later passing away. For e.g. a person or a building, both are destroyed with the passage of time, even the happiness and sorrows in life are not constant; like the circulation of spring and autumn, the ups and downs come and go. Change is even necessary or mandatory in everyone’s life because when the water of a swimming pool is not constantly changed it becomes a siccative pool, so change is an essentially of life, change cannot be stopped or controlled in any way nor an attempt of it should be made, the only thing in our hands is the quality of change, i.e. that kind of change we desire to bring about in us or around us, the change which is to be brought about should always be a change for better and for the betterment of individuals and mankind as a whole. If the Anitya is destined to happen, then why not for good?

Like ways, even our Sydenham college has undergone a vast change in its journey of 100 glorious years; A psychosomatic change which Sydenham underwent in 1924 was by producing the first lady commerce graduate in India – Miss Yasmin Surveyor,

1st Lady Commerce Graduate
Ms. Yasmin Surveyor

 it was the first ever milestone achieved by any person in those difficult times and Sydenham was a contributor for that difficult achievement and a gigantic change in society and Indian culture.

Even now, Sydenham is undergoing a number of changes like the renovation and creation of On-line examination facility for students at the library premises. Well, we can surely call it change for better, but at the same time we all are aware about the fading reputation of Sydenham from past few years, that’s true but with the understanding of Law of Impermanence (Anitya) that we now know, we can hope that this image will also change soon, and change will surely be for better and we all expect that this change will knock very soon in near future, this all will happen with a magic wand, right? Then it’s WE (the students) who can and should contribute to bring a more conscious change & I know you will in any and every way possible.

The nature has planned everything for us already beforehand and it shall reveal itself when the appropriate time comes for us to know what is in-store for us, therefore to create anxiety and worry and to carry it all day long with us is actually of no use to us, well I don’t mean that “let happen, whatever is happening,” but burdening yourself with the issue-less issues is of no use, the thing that is not in our control and will never be in our control is waste to give a second’s thought, instead all our energy and time should be diverted towards productive and good work in hand since its not a hidden fact that there are energy crises in individual, they already are forcing themselves to work and above all that there are baseless, issue-less and meaningless ‘matters’ that come across and disturb the working which is going on.

For problems in life one thing should always be remembered that “This too will pass, sooner or later, problems are bound to pass away with the passage of time.” My work here is to guide all my friends for a better living and even wish them a stress-free life, full of bundles of happiness and may the lord’s shower his choicest blessings on you all and OUR Sydenham.

Change is the way of life. Choice it’s determinant

On this auspicious occasion of Sydenham’s century year, I feel greatly honored and humbled that I form a part of this age-old structure, I being able to witness the 100th and 101st year, would like to say goodbye to an era with lots of past glorious memories and welcome the new era with open arms and best wishes for future and a positive approach for its success and development, may Sydenham go on making centuries after centuries and continue to serve one and all with the same zest and belongingness towards it. I recall the dialogue of Mr. Raj Kapoor’s movie which says, “The show must go on and on.” Along with a new era’s beginning and Sydenham’s encounter with a new modern phase, I wish all my Sydenham associates a very happy life ahead with a feeling of gratitude over the Vidya mandir which gave us shelter for quality learning and a precious college life. I wish, hope and pray that like me, even you are able to gratefully and gracefully accept what Sydenham has to offer you as our beloved Vidya Mandir.

Sydenham Stamp
Sydenham 1989 Stamp

(The intention of writing this was to inform the new-joiners of Sydenham College about it’s legacy and to bumpy ride recently and to feed in them the sense of responsibility as a student. Being for 7 long years in Sydenham (F.Y.J.C. to M.COM) I have got into the nerve of Sydenham and Sydenham in mine. Hope adequate justice is done by me.)

Electronic v/s Electromagnetic

Electronic v/s Electromagnetic

It was a bright summer sunny day of 9th May, 2013 just like any other day for me, amidst the IPCC examination (CA Inter) that I was undergoing & had reached the mid-point of seven nervous papers break down serious, my center for examination was quite a distance from my residential area so I was advised & warned, simultaneously, to reach well within time at the examination hall, so did I every day, but that day had something in stored for me which revealed as a life-sutra for me which I am sharing with you my dear friends.

That day I reached almost one and a hour before the paper starts which meant I would easily get the seat to sit in the quadrilateral ground where all assembled before the paper started, it was the bench for three so I sat in one corner & to my pleasant surprise one of my friend too came early and sat there at the other corner of the bench leaving the middle sit empty, we exchanged pleasantries and then I again started the dip into my last minute revision, slowly the ground was getting filled up as I could hear the chirping sound of all nervous stricken students like me, at the very same time I saw an old man almost in his seventies approaching me, probably to sit in the empty place between us, the man gently tried to sit in between me and my friend but my friend hurriedly with all her luggage in her lap moved to center, paving way for him at the other end, the man looked a bit surprised and astonished & he sat at the other end and filled some form that he had in hand.

After having a glimpse at my friend, the old man said in an amiable voice, “I have seen my people, & no one prefer to move from the place where are seated but you seem to have lot of affection with your friend that you moved with all your bastara near your friend.” Paranoid by the exclamation of the old man, my friend started to justify her move in greatest detail possible and again after 3-4 minutes she further continued her justification theory which was causing disturbance in my LMR but I ignored and continued my theoretical analysis of taxation that I was doing.

Finally, the old man spoke, “Beta, relax I was just joking, I do not mean anything wrong.” Still not content with the words of old man my friend contested something, to which the old man responded in a very unusual manner, he asked us, “Have you seen a fan?” to which, she nodded in affirmation. He further asked, “How is it different from any other appliances?” “Means…”, “What is the difference between a light-bulb and a fan?” he inquired, “Both are electric appliances which work on power”, she said, “Correct, but any peculiar feature that you would like to tell me about the fan…!” she started thinking and I decided to jump in between, “No, I am unable to differentiate, except that both have specific uses!”

He chuckled, “When you switch on the fan, the fan moves slowly and gradually increases its speed and then after few seconds gets to its set speed, & when you switch it off it gets off in a similar fashion as it started, whereas the light-bulb gets instantly switch on and off too, within a flick of a second, true or not, i.e. light-bulb is an electronic device whereas the fan is an electromagnetic one” such an obvious thing that was I thought to myself and why is this man repeating such a thing to us and that too now when there are couple of moments left for the paper to begin but still I found his speech quite interesting and wanted to derive the crux of what he meant so I asked, “True, but what are you trying to convey, uncle?” and the most awesome explanation followed, “Your friend, has got an electromagnetic mind, she is not able to stop the thoughts from the comment that I made regarding the seat whereas you have an electronic mind, which could be sensed by your behavior, when I commented you looked at me and then again put your head down in your book and continued your studies, which she was unable to do.”

He looked at both and continued, “In life, we come across various such situations where we are caught up doing something really very, very important and then a thought arises or something odd happens and we get so much involved in that, that we have to suffer the important work in hand, because our mind mostly operates in such an electromagnetic fashion that it cannot get instantly on and off at our desire, so we suffer a great deal in useless and baseless talks like “Why he did so? Why she said so? What does she mean? What does he think? Such topics can wait to the priority and important task at hand, you’ll are very small now and should condition your mind in such electronic way that when you are caught up in an emergency task, you register the not-so-very-important event but do not start to ponder upon it at that very moment and can hold it for the later chilled out time when you can retrieve the not-so-very-important things and then give it a thought to sort it out (if required). For example, when you are driving the car and someone calls and abuses you, you should be able to set away the abuses and concentrate on your driving and later when you have reached the destination safely you can probably analyze the situation and reaction of that other person, you should decide to respond at your own will” and then he got up and disappeared in the crowd somewhere.

Brain Rewiring
Brain Servicing Due

Wow…!!! What I thought that was, Such a deep understanding from such a simple observation, (or perhaps that uncle was scientist or engineer or mystic – don’t know) but it left me spell bound and it somewhere shook my inner chords that I started reflecting upon the incidents in our daily life where we give so much room for the useless in place of precious and important work. We happen to leave our daily important and necessary chores and start thinking about others actions and reactions and always try to justify why it happened and was it correct or not, leading to waste of energy and time.

Sometimes, I wonder, we should have a switch in our mind, where we can decide what to think and what not, when to think what and have a complete monitoring over the thoughts and our actions but that’s fiction and not reality, so in real life we will have to develop the electronic mind instead of an electromagnetic one, which will act not only as an energy saver but also will help in concentrating our selves to work in hand and our mind will be free of its unnecessary chattering.

Brain On Off
Have you got yours on place?

Did you get the logic right, now what, simple, next step is magic i.e. Application of Logic, daily awareness of selves’ mind and its thought will help you cultivate useful thoughts and curtail useless one, I agree it is not as simple as it sounds but we can start at least with some amount of mindful thinking and keep progressing, day by day in every way, to be a better person.

OH, I was studying for my IPCC paper, come on my electronic mind, start studies…!!


(Note: The images used for this blog are taken from Google and no theft of copyright images (if any) is intended, these images are used to give the reader the required effect and convey the point with more conviction.)

Dichotomous dilemma of Self

Dichotomous dilemma of Self

(Extracts of a dialogue between self – The Inner Self vs. The Outer self)

The fear of what? I don’t get it.

Whatever had to happen, happened and you had your say, everything is not your mistake and you certainly cannot rectify everything that you did wrong. Something’s are to be left as it is, for the time to rectify. Of-course, it may cause you pain and break you down at times but you cannot be down always and you will have to get up some time, so why not NOW.

Your mistakes or failures are the lesson for you to learn in life and should be taken up positively and optimistically that they are going to make you a better person: “An individual worth praising and loving by all.

You are a human being and you make mistakes, that is normal, but you have to do one thing that rest may or may not do, i.e. introspect on your mistakes and dwell a seconds thoughts on the root-cause of your mistakes, if possible rectify it as soon as possible and if not, then live with it but even live with the lesson that it thought you and figure out what the correct course of action should have been in such a scenario so that if next time, even if you face a situation near the 100-yard circle of your previous mistake situation, you will be able to respond (not react) it in a more responsive and more mature manner which you have thought-well and understood and analysed.

All actions have a consequence and that is what you are facing right now in your life. The consequence of a bad action can be no good and as soon as you learn it, you will be happy, satisfied and up-on your toes. This time with more caution, more prudence. Sometimes, things go wrong, they are meant to be. You don’t really fail if you learn from your mistakes, you actually succeed.

But this, (what I am facing right now) is a disproportionate punishment given to me, it won’t be incorrect to call it an injustice inflicted on me. I was nowhere responsible to such huge punishment in my life and what about the thing I want, I really need it.

Is it possible on this universe to view one’s own case with impartiality without justifying the self-actions as the-need-of-the-hour or no-other-alternative crap? And how can the wrong-doer himself decide the punishment or comment on the severity of the same? According to you, you should be given more chances, don’t you think so?

More chances, No. No, I want things to be normal, I want them to be like they were before, I want everything back to normalcy and I promise to be a better person, to obey every law, to pay every homage and obeisance’s and not do any action that is incorrect or hurting. I truly, deeply and reverently promise. Just give me one more chance, JUST ONE more is all I ask.

So, you weren’t given any opportunity to improve, you weren’t warned, you weren’t advised on the correctness of your action? Did this happen all of sudden without you being informed of your actions? Didn’t I prick you every time you went back to your nature, never did I tell you the benefits of being at a higher state? Didn’t I warn you to not dodge your feelings and face them, face the reality and the direction of your actions? Weren’t you time and again confronted for whatever you said, did or thought? Were you not told to be more serious for this and not to take that as a joke? Did you listen at those times, when you were taking all this for granted and when you were told that you will repent on this later, you always grinned like a Cheshire cat and never took it seriously in your life, Right? Then why now, why this drama, why this repentance, why this longing?

Didn’t you think that this will never happen to me and I will and I can always escape, whatever I do? Weren’t you believing that you are the unbeatable one and whatever you do is correct? Were you not taking all this for granted?

My Perspective

You also know that my intentions were pure, or if not pure, they were not at all bad. I never intended to do wrong or hurt anyone. It just happened that way and I think I have repented enough for the same.

Intentions! How does anyone justify that? Your intentions are your own and no can be judged on the basis of intentions, because the gravest crime had some beneficial intentions for the committer of the crime.  So, are we just going to pardon everyone on the basis of intention havala? If that is to be made a rule, will there be anything incorrect and everything can be justified under the sun. Right?

How do I prove my innocence then? You are not ready to take any justification or grant any solace.

Why you want to prove things to others and why you want someone to tell you that “I understand, your actions are justified” or to tell you, “I am with you.” Why do you have the need for getting accepted or approval from others? And even if they understand you, how will it make a difference in your life? Why do you have an expectation for acceptance from others, whereas you yourself are not ready to accept anything about yourself!!

If others don’t know, what will they think and say? Won’t they exclude me? How on earth will everything fall in place?

If you think what others will think, then what will others think? Let them think what they want, that does not change the truth / reality even by a percent. You don’t want others approval in your life for the things to be alright. You can decide to be alright all by yourself. It’s your decision, independent of others. As far as the exclusion part is concerned, that’s not the concern because this is a baseless fear one can carry in his mind, tell me one man who was totally excluded from the man kind by all, the only thing is that some will understand you, many won’t. But that is their choice that they are going to make and they would have done it anyways, if not for this then for something else.

It is always easier said than done! You have no understanding of my sorrow or what I am going through. I am not able to understand my feelings, this is so very painful, my head hurts, I can’t think anything else, Why me?

What is making your feet’s cold and head pain? Why are you so nervous? Why are you so emotionally drained, helpless and upset? There are ups and downs. Don’t worry you will sail through this!

Things don’t always go as per plan. Things do go beyond control and you really can’t help it at times but having a bad day doesn’t make it a bad life. You can choose to not give-in to it and start taking charge of everything that you want. You have to just decide to take that first step of starting afresh. Give it a try again, built it again. You may not be able to undo what happened but you can always create something more meaningful and beautiful in your life now on.

I have to grapple everyday with my fear, this uncertainty is killing me inside, I understand but can’t find a way out!

The fear of What? I don’t get it….

(The context on which the two are speaking is not indicated and various inferences of the same can be drawn by the reader, the objective is simple – since I want the reader to put his own context and read the dialogue as per his understanding and progression. Secondly, as you see, these are extracts, the conclusion is left on the reader, since every self has his own voice. The loop which is created, is what is usually we are caught in, we all just need to break the loop and see things in a more detached and just manner.)

Choice is always mine