Indore HD brings you some of the cardinal 2018 budget highlights, read on to know all things that might be of importance to a common man.
Indian budget every year is always a mixed bag; some like it while some totally reject it. This year wasn’t any different and when Mr. Arun Jaitley appeared with the briefcase that had the future of finances held up for the Indian population, people were quite sceptical that how it’s gonna be. For the starters and the relief for many people, the new budget kept the old Income Tax slab intact this year but had many changes at rest of the areas. Following are 2018 Budget Highlights :-
10% Tax On LTCG Exceeding 1 Lakh
Long Term Capital Gains tax has taken a hit in the new budget and now the individual needs to take care of the tax on gains arising from the transfer of listed equity shares exceeding Rs. 1 Lakh at 10 percent. However, if you have any previous gains till 31st of January, 2018, then they will be exempted.
Senior Citizen Will Get An Additional 50,000 Benefit In 80D
Senior citizens have a reason to rejoice as the new budget has raised the limit of the section 80D to 50,000 from the current 30,000. The additional 20,000 rupees will be a direct saving from now on.
Exemption Of Tax On Fixed Deposits For Senior Citizens
Senior citizens who have fixed deposits or recurring deposits in bank can now enjoy additional tax benefits in the same. The new budget has raised the amount to 50,000 from 10,000. This simply means that the additional 40,000 will attract no tax whatsoever.
DDT On Equity MF
People who are trading in share market must be well aware of the dividend distribution. Well, the new budget has introduced a tax on equity-oriented dividend distribution that will be charged at the rate of 10%. In layman’s terms, the income that was generated by the dividends while trading now will attract an additional tax and the end income at the hand of investor will be less by that much amount.
PMVVY limit to Rs 15 lakh
This budget seems to carry a bucketful of good news for senior citizens! Pradhanmantri Vaya Vandana Yojana now is doubled to 15 lakhs from 7.5 lakhs. Any income generated from the same will now be exempted to the said amount; which is quite a lot!
Salary Deductions Of Medical Reimbursement & Transport Allowance
There will be a standard deduction of 40,000 rupees directly from the salary of employees and it will also take away existing annual transport allowance of Rs 19,200 and Rs 15,000 medical reimbursement. After the deductions the tax on the salary will be calculated on the basis of the slab that the income of a particular employee falls on.
Introduction Of Standard Reduction
There will be a standard deduction of rupees 40,000 from the salary of employees from now on. It is a flat amount that will attract no calculations based on slabs or percentage and the final income tax will be calculated on the deduction of this amount. The standard deduction was a part of the Income-tax Act until former finance minister, P. Chidambaram, withdrew it in the Union budget of 2005-06.
Income Tax Cess Now At 4%
Income tax cess that was earlier at 3% will now be 4% and it has to be paid by all categories of tax payers. If we are going to take the increased 1% into account then it works out at around Rs 1,125 for people who have an income between 5-10 lakhs.
2018 budget came with lot of surprises and changes! As every year, the budget wasn’t as the way people expected it to be. Hope you found the above pointers informative, on 2018 Budget Highlights!