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
As this is the quick first version of income tax calculator, things might change once we go through the fine print details. Hence would be good idea to download this again after few days.
Income Tax Slab for FY 2018-19 [AY 2019-20]
For Income Tax Purpose – citizens above age of 60 are considered as Senior Citizens and above age of 80 are considered Very Senior citizens.
Download Income Tax Calculator
You can download the Income Tax Calculator for FY 2018-19 [AY 2019-20] from the link below.
Limitations of the Calculator:
- This Calculator is for people with only one home
- It does not computes Capital Gains Tax
These features might be incorporated in next versions of the Tax calculator