• No change in Income Tax Slabs in respect of individuals.
  • Standard Deductions shall be allowed in case of salaried persons for Rs.40000/= in place of the medical reimburse allowance and conveyance allowance.
  • 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.
  • 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.
  • PAN is mandatory for any entity for entering in to financial transaction of Rs.2.50 Lakh or more.

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