2018 Budget has been announced and their no change in the tax slabs with only few up gradations and pitches to few. Here are 10 income tax changes that will come into effect from April 1, 2018, once the Finance Bill is passed by the Parliament.
Standard Deduction :>
In a relief to the salaried class, the FM has
re-introduced standard deduction of Rs 40,000 from salary income. Apart from salaried class, even pensioners will be allowed to avail the benefit of this deduction. Central Board of Direct Taxes (CBDT) Chief Sushil Chandra has clarified that to avail this tax benefit one would not be required to submit any proofs or bills, it can be claimed straightaway.
Transport allowance and medical reimbursements to become taxable :>
While standard deduction has been reintroduced, the tax benefit available on transport allowance and medical reimbursements has been taken away. Currently, transport allowance of Rs 19,200 and medical reimbursement of Rs 15,000 per annum is exempted from tax. If the Budget is passed by the Parliament, then starting from April 1, 2018, these two allowances will become a taxable part of your salary.
Cess hiked to 4 per cent :>
Cess levied on your tax liability has been hiked by 1 per cent from the current 3 per cent to 4 per cent. This cess will be called “Health and Education Cess.” So, if you have net taxable income of Rs 5 lakh, your tax outgo will marginally increase by Rs 125. Similarly, for someone with a net taxable income of Rs 15 lakh, their tax liability will increase by Rs 2,625.
Introduction of tax on long-term capital gains (LTCG) on equity and equity-oriented mutual funds :>
Starting from April 1, tax will be levied on LTCG arising from the sale of equity and equity-oriented mutual funds. Earlier, these gains were exempt from tax. It will be charged at a rate of 10 per cent plus cess at 4 per cent. However, to provide relief to small investors, LTCG up to Rs 1 lakh will be exempt from tax per fiscal.
Increase in tax-exempt limit of interest income for senior citizens :>
In a bid to provide relief to senior citizens…………Read More>>
Source by techiyogiz..