• No change in Income Tax Slabs in respect of individuals.
  • Standard Deductions shall be allowed in case of salaried persons for Rs.40000/=. Standard deduction shall be allowed to pensioners also. Of course, there is not much benefit to the salaried persons who are in receipt of Medical allowance and conveyance allowance because theses allowances are discontinued but other employees will get benefit of standard deduction. Standard deduction is allowed to all employees and pensioners irrespective of their salary or pension. Please note that the maximum limit of medical allowance was 15000/= and conveyance allowance was Rs.19200/=. So, the person who were in receipt of these allowances will be benefited up to Rs.5800/= per annum.
  • Medical reimburse allowance and conveyance allowance are discontinued.
  • Health & Education Cess @ 4% on Income tax including surcharge is introduced in place of existing Education Cess and Higher Education Cess @ 3%.
  • No change in rate of surcharge.
  • Long Term Capital Gains Tax @ 10% will be charged on equities and equities oriented mutual funds without indexation if the Long Term Capital Gains is more than Rs. One Lakh. The holding period for such type of investments is one year. All such Long Term Capital Gains till 31.01.2018 will be ignored and future gains to be calculated taking the base of 31.01.18.
  • Dividend Distribution Tax shall be levied @ 10% on distribution of profit by equity mutual funds on or after 01.04.2018.
  • Corporate Tax is reduced from 30% to 25% in case of the companies having turnover up to Rs. 250 crore.
  • Deduction of interest from banks and post office is increased from Rs.10000/= to Rs.50000/= in case of senior citizens. TDS also will not be deducted on the income of interest from such deposits up to Rs.50000/=.
  • For certain illness under section 80 DDB, the deduction is increased up to Rs. one Lakh  in respect of senior citizens.
  • Medical insurance deduction under section 80D is increased up to Rs.50000/= in case of senior citizens.
  • Interest bearing scheme with LIC deposit is increased from Rs. 7.50 Lakh to Rs.15 Lakh in case of senior citizens.
  • The tax exemption on National Pension Scheme is extended to self employed individuals also on withdrawals of up to 40% of total amount.
  • Exemption under section 54EC in respect of investment in capital gain bonds is to be allowed only in case of transfer of immovable property.
  • Lock in period of capital gains bonds is increased to 5 years.
  • Contributions of women employees in cut from 12% to 8% for first three years of employment.
  • The Government shall bear the Employer’s Contribution to Provident Fund @ 12% on wages for the new employees for first three years in all sectors.
  • Income from a heavy goods vehicle to be estimated at Rs.1000/= per ton of the gross weight of the vehicle for each month.
  • PAN is mandatory for any entity for entering in to financial transaction of Rs.2.50 Lakh or more.
  • Filing of return by due date will compulsory for claiming deduction under section 80HH to 80RRB.

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