income tax payable

10 Amendments In Income Tax Rules From April 2018

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The finance minister also introduced a standard deduction for salaried employees which will, particularly, benefit those who are in lower tax slabs. He proposed an increase in cess, which is charged on the amount of income tax payable. Most of these changes will be effective from FY 2018-19.
1. Standard deduction of Rs.40,000 Introduced: This Will Benefit to salaried employees and pensioners who do not enjoy any benefit of medical and conveyance expenses. Salaried Class will also enjoy exemption of Rs. 40,000 in their Taxable Income.

2. Cess Increased on Income Tax from 3% to 4% on the Amount for Individual Taxpayers on the Amount of Income Tax Payable.
3. A new 10 percent tax (cess extra) will be applicable on capital gains exceeding Rs. 1,00,000 upon sale of equity share or units of equity oriented funds.
4. Tax at the rate of 10 percent will be levied on dividend distributed by equity-oriented mutual funds.
5. According to the Changes in Budget 2018, Single premium health insurance policies having cover of more than one year, deduction will be allowed on a proportionate basis for the number of years for which health insurance cover is provided, subject to the specified limit.
6. The Government proposed Extension to the benefit of Tax-free Withdrawal
From NPS To Non-Government Employees.
7. Senior citizens will get higher interest income exemption limit on deposits in banks and post offices, including recurring deposits.
8. The threshold for deduction of tax at source on interest income for senior citizens is proposed to be increased from Rs. 10,000 to Rs.50,000.

9. The government proposes to increase the deduction for senior citizens on payment of health insurance premiums. The limit has set from Rs. 30,000 Rs. 50,000.

10. The deduction available payment towards medical treatment of specified disease is proposed to be hiked to Rs. 1 lakh for very senior citizen.

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