Value your Money, Value your Life: Budget FY 2018-19 from 30,000 feet

Thursday, February 1, 2018

These are the budget highlights. Although there isn't much for the salaried class people. Let see some "good" and "not good" changes.

No change in personal income tax slab. No change in 80C limit.
Short term capital gains remains unchanged at 15%.
Long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation. Capital gains made on shares until Jan 31 will be exempted from this rule.
Dividend from Equity funds will be taxed at 10%.
Education cess increased to 4% from 3%. This is the cess you pay on your income tax.

Govt will contribute 12% of wages of new employees in EPF for all sectors for the next 3 years.
EPF women contribution reduced to 8% from 12% for the first three years. This will increase their in hand income.
3 govt insurance companies including National insurance company, New India Insurance company, Oriental insurance company will be merged to make single insurance company.
No TDS for senior citizens on FDs and post office deposits upto Rs 50,000. This limit was Rs. 10,000 before this budget.
Government will build customer friendly gold exchange. There will be changes in gold monetization scheme and other changes.
Ayushman Bharat Programme. Rs 5 lakh/year per family for 10 crore families for health expenses.
Deduction on medical insurance premium has been raised to Rs 50,000 from Rs. 25,000 (Rs. 30,000 for senior citizens) under section 80D. For senior citizens with critical illnesses will get deduction of Rs 1 lakh. under section 80DDB. This limit was Rs. 80,000 for Very Senior Citizen and Rs. 60,000 for Senior Citizen.
Standard deduction of Rs 40,000 for salaried employees in lieu of transport and medical expenses. It means no need to submit bills in order to get the exemption.