For Salaried Professionals
● Personal income tax slab rates remains the same
● Introduction of Standard deduction of Rs 40,000 for the salaried class (replacing the transport allowance and the
miscellaneous medical Reimbursement)
● Education cess now to be called as Health and Education cess and effective rate increased to 4% from 3%
● Introduction of tax on long-term capital gains above Rs 1 lakh on the sale of equity shares @ 10% without giving the benefit of indexation.
Capital gains tax for until 31 January 2018 will be grandfathered
● Short-term capital gains to continue to be taxed @ 15%
For Senior Citizens
● No TDS on interest from FD upto Rs 50,000
● Section 80TTB introduced to exempt interest from FDs , Post Office upto RS 50,000
● Exemption under Section 80D upto Rs 50,000 for medical insurance for senior citizens
● Exemption limit for Medical Expenditure for certain critical illness from raised from Rs 60,000/- in case of senior citizens and from Rs 80,000 in case of very senior citizens, to Rs 1 lakh in respect of all senior citizens,
under section 80DDB
Other Highlights
● Reduction in corporate tax rate to 25% for companies having a turnover of Rs 250 crores and less
● Deduction under Section 54EC is restricted to the transfer of land/Buildings/ both and the Holding period of the long-term investment asset such as NHAI/ REC Bonds is now increased to five years from the earlier period of three years.
● Equity Oriented Mutual funds to face a Dividend Distribution Tax @ 10%
● Alternate Minimum Tax (AMT) @ 9% to be levied on non-corporate taxpayers operating in IFSC on par with MAT for corporates
● Cryptocurrencies continued to be considered as not “legal tender”. Government to consider exploring the Blockchain technology
● Introduction of e-assessments to reduce interface between income tax department & taxpayers
● Deduction under Section 80-IAC for the eligible business of Start-Ups, is now also available to those that are incorporated on or after the 1st day of April 2019 but before the 1st day of April, 2021 with a condition that the turnover should not exceed Rs 25 Crore for seven previous years commencing from the date of incorporation. Eligible business now also includes “Improvement of products or processes or services or a scalable business model with a high potential for employment generation or wealth creation”
