Changes to the rules related to income tax will be effective from 1st April 2018 …

In the General Budget of 2018-19, Finance Minister Arun Jaitley has not made any changes to the income tax slab and rates but has proposed some changes, which will affect many taxpayers. Most of these changes will take place on April 1 The financial year 2018-19 will be effective as soon as it starts.

 

7 key changes related to income tax-

  1. Increase in Cess: Finance Minister Arun Jaitley has increased the education cess, which means education cess to be levied on income tax, i.e. education cess from the existing three percent to 4 percent … this cess is levied on the income tax payable by the taxpayer.
  2. Long-Term Capital Gain Tax: Investing in Equity: Taxes of 10% tax (plus additional) will be charged if the income from the sale of equity shares or units of equity-oriented funds exceeds Rs. 100,000. However, in order to benefit the taxpayers, the income will not be counted till 31st January 2018. This means that the profit on the prices after January 2018 will be counted as income.
  3. Tax on income dividend income from equity mutual funds: Dividend offered by equity-oriented mutual funds will be taxed at the rate of 10 percent …
  4. Income Tax Exemption on Single Premium Health Insurance Policy: Usually health insurance, i.e. health insurance companies, offer exemptions to customers if they pay a premium for some years together … but now Up to such policies, even a taxpayer could have exempted income tax on the number of premiums up to Rs. 25,000 only … due to proposed changes in the general budget of 2018-19 Well, in the event of a premium of policies taken for more than one year now, it will be exempted for a similar number of years … For example, your insurer will be together for a two-year policy. If you are paying a discount of 10% in the event of paying 40,000 rupees, and you pay it, then under the new proposed rules, the customer will now be able to pay tax on a premium of Rs 20,000 in two years. Can l …
  5. Tax exemption on withdrawal from NPS: The government gives the benefit of tax exemption on withdrawal of money from National Pension System, i.e. NPS, to non-employee consumers, i.e. those who do not employ any job, but also members of NPS It is proposed … Under the current rules, when the employer decides to complete or exceed the duration of a consumer account, when the amount is withdrawn, then 40% Not charged … That discount non-employee users are not, but now that financial benefits from 2018-19 will get them …
  6. Interest for senior citizens increased the exemption limit on income: Now the senior citizens will be able to pay more on the amount of interest earned on savings accounts and recurring deposit accounts (recurring deposits or RDs) opened in banks and post offices. Tax exemption will be achieved … At present, every person on income from savings accounts will be able to pay tax on the interest of Rs. 10,000 under section 80 TTA of Income Tax Act. Now, tax laws have been proposed to add Section 80TTB, under which the senior citizens will be able to get tax relief on the amount of interest up to Rs 50,000 … However, senior citizens will now get 80 TTAs Apart from this, the government has also increased the limit of investment under Prime Minister Yad Vandana Yojana (PMVVY) from 7.5 lakh to 15 lakh rupees, This plan is eight percent sure under the March 2020 proposal to extend even … begin to seniors went prime age Vandana Scheme (PMVVY) …
  7. For senior citizens the deduction limit has been increased under Section 80D: In the General Budget 2018-19, the Government proposes to increase the tax exemption limit on the amount to be given as a health insurance premium … Income Tax Act Under section 80T, till now senior citizens were exempted from tax on a premium of Rs 30,000, but now the limit will be 50,000 rupees … For persons under 60 years of age 80D, The limit of exemption given under Rs 25,000 will be … but if their parents are senior citizens, they will be able to get an extra discount of Rs 50,000, which will result in a total rebate of Rs 75,000 (Rs 25,000 + 50,000), which At present, there are only 55,000 rupees.

 

 

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