There will be some changes in the tax from April 1. What are these changes and what will be the effect on your pocket, we are telling this below. There has been a change in these 5 rules of tax from April 1, 2018.
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Tax Rates 2018
Health and Education Cess
There has been no change in tax slabs or tax rates in this year’s budget. But the government has increased health and education cess, which will increase your tax liability. So far, education, secondary and higher education cess was 3 percent. Now the health and education cess has increased to 4%.
Return of standard deduction
So far, there was no standard deduction facility for the salary class. However, the rehabilitation facility of transport allowance and medical bills could have been replaced in that place. In this year’s budget, the benefit of standard deduction of Rs 40,000 has started. Until last year, Rs 15,000 as medical reimbursement and Rs 19,200 for transportation allocation. Accordingly, you will get the benefit of 5800 rupees.
Senior Citizen Tax Exempt
At present, Senior Citizens got tax rebates on interest of upto Rs 10,000. The elderly get this benefit on the interest received in the bank, co-operative society and post office. The government has increased this by 50,000 rupees in this year’s budget. However, there will be no separate exemption on the interest income of Savings account under 80 TTA.
Long Term Capital Gain Tax
This year, the budget announced a 10% long term capital gains tax on selling shares after one year. Under this proposal, if a capital gain is more than Rs. 1 lakh in a year, then 10% of the additional amount will have to pay a long term capital gains tax.
Due to the treatment of Senior Citizens
Under the existing provision, deduction is available for the treatment of critical illnesses like cancer or AIDS. For the Senior Citizen, this limit is now Rs. 60,000 and for the senior citizen, 80,000 rupees. This time, the government has made it equal to one lakh rupees for both categories by increasing it in the budget.