Key changes announced in the Union budget 2018 are as under
For individuals below 60 years of age
- Standard deduction of Rs. 40,000 for salaried employees in lieu of transport and medical expenses
- Health and education cess has been increased to 4 per cent from earlier 3 per cent
- Surcharge of 10 % on income above Rs 50 lakh but less than Rs 1 cr and 15 % on income above Rs 1 crore
- Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years
Relief to Senior Citizen:
- Standard deduction of Rs 40,000 reintroduced for pension income
- Exemption on interest of 50000/-for deposit and recurring deposit of Senior Citizen
- Health insurance Rs.50000/-, critical illness 1 lakh including preventive medical checkup
Tax on equities:
- Long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation
- Tax on distributed income by equity oriented mutual funds at 10 per cent.
Tax applicable to individuals for the financial year 2018-19 (AY 2019-20)
Born on after 01.04.1959
| Income Slabs | Tax & Surcharge |
| Income slab up to Rs.2.50 lakh | Nil |
| Income from 2.5 lakh to 5 lakh | 5% |
| Income from 5 lakh to Rs.10 lakh | Rs.12,500+20% on 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability) |
| Income more than 10 lakh | Rs.1,12,500+ 30% on above10 lakh +(Cess of 4% on tax liability) |
| Income from 50 lakh to Rs.1 crore | 13,12,500 + 30% on 50 lakh up to 1 crore+(Cess of 4% on tax liability and 10% surcharge) |
| Income from Rs.1 crore and above | 28,12,500 +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge) |
Senior Citizen Born on before 31.03.1959
| Income Slabs | Tax |
| Taxable Income up to Rs.3.50 lakh (u/s 87 A) | Nil . |
| Income from 3 lakh to 5 lakh | 5% + Cess of 4% on tax liability |
| Income from 5 lakh to Rs.10 lakh | Rs.10,000+20% on 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability) |
| Income from 10 lakh to rs.50 lakh | Rs.1,10,000+ 30% on 10 lakh up to Rs.50 lakh+ (Cess of 4% on tax liability) |
| Income from 50 lakh to Rs.1 crore | 13,10,000 + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge) |
| Income from Rs.1 crore and above | 28,10,000 +30% on above 1 crore+(Cess of 4% on tax liability and 15% surcharge) |
Super Senior Citizen (Born on before 31.03.1939)
| Income Slabs | Tax + Surcharge |
| Income slab up to Rs.5 lakh | Nil |
| Income from 5 lakh to Rs.10 lakh | 20%+ (Cess of 4% on tax liability) |
| Income from 10 lakh to rs.50 lakh | Rs.1,00,000+ 30% on 10 lakh up to Rs.50 lakh+(Cess of 4% on tax liability) |
| Income from 50 lakh to Rs.1 crore | 13 lakh + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge) |
| Income from Rs.1 crore and above | 28 lakh +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge) |
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