The Union Budget 2018 is finally here, and these are the following points from the Union Budget that may affect the individual taxpayers.
Union Budget 2018: The New Finance Act
Income Tax Slabs and the Rebate under section 87A and surcharges.
Under Section 87A the Union Finance Minister has provided maximum rebate of Rs. 2500 for the A.Y. 2018-19, which is same as A.Y. 2017-18. Basically, Section 87A provides rebate to the Individuals whose income is below the specified bracket, well this done to reduce the tax burden of the individuals who belong to the lower Income Tax bracket.
How will the change in Cess effect Taxpayers?
According to the Union Budget 2% of Education Cess and 1% of Secondary and Higher Education cess is replaced by Health and Education Cess @ 4%.
What are the deductions under Chapter VIA?
In this Chapter, there is an increase in the deduction available under section 80D and 80DDB for the senior citizens. According to the latest Union Budget, the no of minimum work days has been reduced from 240 to 150, in order to claim deduction. Under section 80TTB there is an increase in the deduction available to the senior citizens. The benefit of tax-free withdrawal from NPS was only applicable to employee subscribers, but now non-employee subscribers can also apply for it.
What is the change in Income from Salaries?
As per Union Budget 2018, there will be a standard deduction of Rs. 40,000 for the transportation and miscellaneous medical expenses. This deduction will also be applicable for the Pensioners who are not receiving any benefits, currently.
How are Cryptocurrencies Taxed?
Since the Government has cleared the air saying Cryptocurrencies are not legal tender and hence apt actions will be taken against their illegal use.
Changes in Pradhan Mantri Vaya Vandana Yojana
As per the Union Budget the amount that can be deposited to this scheme has increased from 7.5lakhs to 15lakhs. This amount can be claimed as deduction under section 80C upto its maximum limit.
So, that was the summary of changes, which this Union Budget has proposed for the taxpayers.