Budget 2018 – 7 Impacts on Salaried Individuals

The tax proposals for the Financial Year 2018-19 were presented by the Finance Minister in the much awaited Union Budget 2018. The focus was on reforms for specific sectors like agriculture, health and education. The tax-related changes under the Budget2018 specifically for the individuals were very confined. The reason stated by the Finance Minister for leaving Individuals high and dry is that the Government has made many positive changes in the personal income-tax rates for individuals in the last three years, hence there would be no changes to the individual. The confined changes done for an individual class have been summarised as under :

 

Check These 7 Impacts on Salaried Individuals:

S.No. Change With relation to Particulars Changes in Budget for F.Y. 2018-19
1 Cess Health & Education Cess The earlier cesses [3%] has been withdrawn and a new Cess has been introduced @ 4% in the name of Health & Education cess.
2 Section 80TTB In respect of interest
income from deposits held by senior citizens.
Inserted a new section 80TTB so as to allow a deduction upto Rs 50,000/- in respect of interest income from deposits held by senior citizens. However, no deduction under section 80TTA shall be allowed in these cases.
3 Section 194A It deals with the deduction of TDS on interest other than interest on securities like TDS on Interest on FD etc The limit of TDS on interest for deposits for senior citizens have been increased from Rs. 10,000 to Rs. 50,000.
4 Section 80D If you have made payment for insurance on the health of yourself, spouse, your dependent children or your parents then eligible for this deduction. For Senior citizen, limit has been increased from Rs. 30,000 to Rs.50,000 (Aggregate deduction if both parents and individual are senior citizen will be Rs. 1,00,000/-)
5 Section 80DDB If Expenses is incurred for medical treatment on specified diseases of dependent(an individual, the spouse, parents, children , brothers & sisters) then eligible for this deduction. In this budget, under deduction u/s 80DDB, the class of super senior citizen has been submerged into senior citizen raising the limit of Rs.60,000/80,000 to Rs. 100,000 or the amount incurred whichever is lower.
6 Slab Rate The Slab Rate means the rate at which tax would be levied on the total income as per the various specified income tax slabs. No change in slab rate. However, Standard Deduction of Rs.40000/- has been provided with in place of transport allowance & medical allowance.
7 Capital Gain The income arising on selling of capital asset like shares, land etc. is taxable under this head. For the first time, long-term capital gains from listed equities exceeding one lakh has been taxed at 10 percent without indexation.Further, Short-term capital gains will continue to be taxed at 15 percent for a one-year holding period.
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Categorized as Blogs, Budget
Abhishek Soni

By Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

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