Budget 2018 has made some changes to Income tax for individual. There has been no changes in the income tax slab, however there have been some changes related to salaried/pensioner tax payers and senior citizens. We highlight the changes and give you the new tax calculator for FY 2018-19 [AY 2019-20].
Changes in Income Tax Rules:
1. No Change in Income Tax Slabs
2. 1% additional health cess taking total cess on income tax to 4% (2% education cess & 1% higher education cess continues). This will marginally increase income tax for every tax payer.
3. Standard Deduction of Rs 40,000 to Salaried and Pensioners. However transport allowance (Rs 19,200 per annum) and medical reimbursement of Rs 15,000 has been abolished. So the net benefit for salaried would be Rs 5,800 only bringing marginal relief. However Pensioners would gain as they did not have transport & medical allowance.
4. 10% Long Term Capital Gains Tax on Equity and Equity based Mutual Funds introduced.
5. Medical Insurance premium exemption for senior citizen increased from Rs 30,000 to Rs 50,000 u/s 80D
6. Medical expenses will see increased tax benefits for senior citizens. 100,000 on critical illness u/s 80DDB
7. Rs 50,000 exemption for interest income from Bank or Post Office Fixed/Recurring Deposits for Senior Citizens
INCOME TAX SLABS FOR FY 2018-19 (AY 2019-20)
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General Public
Below 60 year of Age
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Senior Citizens
60 to 80 Year of Age
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Very Senior Citizens
More then 80 Year of Age
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Income Tax Slab
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Tax
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Income Tax Slab
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Tax
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Income Tax Slab
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Tax
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Up to Rs. 2.5 Lakhs
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Nil
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Up to Rs. 3 Lakhs
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Nil
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Up to Rs. 5 Lakhs
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Nil
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Rs. 2.5 - 5 Lakhs
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5%
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Rs. 2.5 - 5 Lakhs
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5%
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Rs. 5 - 10 Lakhs
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20%
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Rs. 5 - 10 Lakhs
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20%
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Rs. 5 - 10 Lakhs
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20%
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Above Rs. 10 Lakhs
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30%
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Above Rs. 10 Lakhs
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30%
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Above Rs. 10 Lakhs
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30%
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1. Education + Health cess of 4%
2. Surcharge of 10% on Rs. 50 Lakhs to Rs. 1 crore pluse income
3. Surcharge of 15% on Rs. 1 crore pluse income earners
4. Tax credit of Rs. 2500 for income up to Rs. 3.5 lakhs u/s 87a
5. Standard Deduction of Rs. 40000 For salaried and Pensioners
6. There are no separate slab for male and female
