FIIT^TM Accountants Hub Pvt. Ltd.

[Placement division]

Changes in income tax laws as per Budget 2018:

·       Standard deduction of Rs. 40000/- for salaried employees is re- introduced in place of transport allowance 19200/- and Rs. 15000/- for medical reimbursement.

·       Health and education cess of 4% levied in place of education cess of 2% and higher education cess of 1%

·       Wef 31^st jan 2018 10% tax (plus cess) on Capital gain is levied if gain on sale of equity shares or equity oriented funds exceeds Rs. 100000

·       Tax @ 10% levied on dividend given by equity oriented mutual funds.

·       In case of single premium health insurance plans  80D deduction could be claimed based on the number of years of coverage

·       Withdrawl from NPS upto 40%  without tax is now available to non employees also

·       80TTB deduction introduced against 80TTA for Sr Citizens by which they will get deduction of 50000/- on bank saving & post office saving interest instead of 10000

·      Hike in TDS threshold limit to 50000 from 10000 for Sr. Citizens on Interest Income.

·      Deduction u/s 80D increased to Rs. 50000 from 30000 for Sr. Citizens for individuals below 60 years limit is same as Rs. 25000. Total deduction increased to 75000 from 55000.

·       Deduction u/s 80DDB  for medical treatment of Specified Diseases is proposed to be revised to Rs. 100000 from 80000 or 60000

·       Donation made in cash exceeding Rs.2000 will be not be eligible for deduction under section 80G.

·       Tax exemption will be available on reinvestment of capital gains in notified redeemable bonds (In addition to investment in NHAI and REC bonds).

·       In absence of PAN of the buyer of specified goods the rate of TCS will be twice of the extent rate or 5% whichever is higher.

·       From Financial Year 2017-18 if Return is not filed within due date late fee of Rs.5000 for delay up to 31st December and Rs.10000 thereafter. Such fee will be restricted to Rs.1000 for small taxpayers with income up to Rs.5 lakh.

·       A simple one page tax return form is to be introduced for Individual with taxable income up to Rs. 5 lakh (excluding Business Income). Those filing returns for the first time in this category will generally not be subject to scrutiny.

·       Time period for revision of tax return cut to one year (from 2 years) from the end of relevant financial year or before completion of assessment whichever is earlier.

·       Where Section 12AA registered trusts modify their object clause they need to apply within 30 Days to CIT for approval.