Budget 2018-19 Key Highlights



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.

Thanks!
(Collected from cleartax.com)


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