Wednesday, 7 February 2018

Budget 2018 - Impact Points for Common Man


General
  • Education cess of 3% has been replaced by the Health and Education cess of 4%.
  • Henceforth, 40% of the sum withdrawn from NPS by senior citizens is exempt non-salaried assessees too. Hitherto it was exempt only for salaried assessees.

For Salaried persons
  • For assessees with salary income, a standard deduction of Rs.40,000/- will be allowed
  • Currently, Medical reimbursement and transport allowance is exempt upto Rs. 15,000 and  Rs.19,200 respectively.  This has been replaced with introduction of Standard deduction.


For Senior citizens
  • Mediclaim deduction has been increased from Rs.30,000 to Rs.50,000
  • For ailments specified in Section 80DDB, the deduction limit in respect  treatment for senior citizens and very senior citizens is Rs. 100,000/-
  • In respect of interest earned from Savings bank account, Fixed deposit account and Post office deposits accounts a deduction of Rs.50,000/-  would be allowed. However, no deduction under section 80TTA shall be allowed for such assessees.
  • No TDS will be deducted on interest income for senior citizens upto Rs. 50,000/-

For Capital asset holders
  • Equity shares and units of equity oriented funds held for more than 12 months are taxable at 10% on sales. No indexation benefit will be given in respect of such sales
  • Exemption in respect of capital gains through investing in NHAI or REC bonds will be available only if the bonds are redeemable after 5 years (as against 3 years)


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