7 Changes in Income Tax Rules in FY 2018-19

7 Changes in Income Tax Rules in FY 2018-19

1. No Change in Income Tax Slabs

(5%, 20% and 30%)

 2. 1% additional health cess taking total cess on income tax to 4% (3% education cess & 1% higher education cess continues). This will marginally increase income tax for every tax payer.

 3. Standard Deduction of Rs 40,000 to Salaried and Pensioners.

However transport allowance (Rs 19,200 per year) and medical reimbursement of Rs 15,000 has been abolished.

So the net benefit for salaried would be Rs. 5,800 only bringing marginal relief.

However Pensioners would gain as they did not have transport & medical allowance.

4. Rs. 50,000 exemption for interest income from Bank / Post Office Fixed / Recurring Deposits (RDs) for Senior Citizens

5. Medical Insurance premium exemption for senior citizen increased from Rs. 30,000 to Rs. 50,000 under Indian Income Tax section 80D

 6. Medical expenses will see increased tax benefits for senior citizens. Rs. 1,00,000 on critical illness under Indian Income Tax 80DDB

7. 10% Long Term Capital Gains Tax (LTCGT) on Equity and Equity based Mutual Funds introduced.

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