Feb 1, 2018, was the important day for every Indian taxpayer
as our Hon'ble Finance Minister announced the budget 2018 and proposed many
changes in personal finance. If you pay taxes then you should know about the
latest income tax changes which the Government has announced in the Budget
2018.
Here is the list of important Income Tax updates announced in Budget 2018:
No changes in Income
Tax Slabs for Salaried Individuals:
As everyone was expecting the change in Income Tax Slab but
the government did not change the Income Tax slab for salaried employees or
Individuals. Here is the income tax slab for FY 2018-19:
Hike in Cess on
Income Tax from 3% to 4%:
The government has hiked the Cess on income tax from 3% education
Cess to 4 % education and health Cess for all the categories of taxpayers.
Removal of Medical
Reimbursement and Travel Allowance from Salary:
Budget 2018 has proposed the removal of Medical
Reimbursement and Travel Allowance from the Salary. The Government has also
announced the standard Deduction of Rs. 40,000 from Salary Income to employees.
10% tax on Long-Term
Capital Gains:
This was the most important announcement in Budget 2018
about the Long-Term Capital Gain. The government has Introduced a 10% tax on
LTCG (Long-term capital gains) if it exceeds more than Rs. 1 lakh. Finance Minister also introduced a Dividend
Distribution tax on equity oriented Mutual Funds at the rate of 10%.
Hike in Section 80D
limit for Senior Citizens:
Finance Minister in Budget 2018 announced a hike in Section
80D limit to Rs. 50,000 from Current Rs. 30,000 for senior citizens. There is also an exemption of interest income
on fixed deposits and post office deposits from Rs. 10,000 to Rs.50, 000 for
senior citizens.
Overall Finance Minister has introduced major changes in
personal finance like long-term Capital Gain Tax, hike in Section 80D limit for
Senior Citizens and exemption of interest income on fixed deposits.
Get
a call back from our tax experts for any query related to Budget 2018 or Income
Tax: https://www.trutax.in/askexpert