Our Finance Minister presented Budget for 2018 Budget.
Key Takeaways from Budget Proposal for AAM AADMI (Middle Class):
- No Change in Personal income tax slab rates
- Standard deduction of Rs 40,000 for the Salaried class (Merging of Medical Allowance and Transport Allowance) and Mostly benefited will be Pensioner’s.
- Education Cess now to be called as Health and Education cess effective rate increased to 4% from 3%.
- LTCG – Introduction of tax on long term capital gains above Rs 1 lakh on sale of equity shares @ 10% without giving the benefit of indexation.
- No TDS on interest from FD upto Rs 50,000.
- Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh
- Exemption under Section 80D upto Rs 50,000 for medical insurance for senior citizens.
- Equity Oriented Mutual funds to face a Dividend Distribution Tax @ 10%.
- Short term capital gains to continue to be taxed @ 15%.