Budget 2018 : Key Highlights
Individuals and salaried class
- Personal income tax slab rates remains the same.
- Introduction of Standard deduction of Rs 40,000 for the salaried class (replacing the transport allowance and the miscellaneous medical Reimbursement).
- Education cess now to be called as Health and Education cess effective rate increased to 4% from 3%.
- Introduction of tax on long term capital gains above Rs 1 lakh on sale of equity shares @ 10% without giving the benefit of indexation. Capital gains tax for until 31 January 2018 will be grandfathered.
For senior citizens
- No TDS on interest from FD upto Rs 50,000.
- Exemption under Section 80D upto Rs 50,000 for medical insurance for senior citizens.
- Exemption limit for medical expenditure for certain critical illness from raised from Rs 60,000/- in case of senior citizens and from Rs 80,000 in case of very senior citizens, to Rs 1 lakh in respect of all senior citizens, under section 80DDB.
Others
- Reduction in corporate tax rate to 25% for companies having a turnover of Rs 250 crores and less.
- Equity Oriented Mutual funds to face a Dividend Distribution Tax @ 10%.
- Short term capital gains to continue to be taxed @ 15%.
- Cryptocurrencies continued to be considered as not “legal tender”. Government to consider exploring the Blockchain technology.
- Introduction of e-assessments to reduce interface between income tax department and taxpayers.
Here's how much your income tax liability will be as per the proposed announcements in the budget:
