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 important changes in personal finance like long-term Capital Gain Tax, hike in Section 80D limit for Senior Citizens and hike in exemption of interest income on fixed deposits for Senior Citizens.
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