Budget 2018: Changes in Income Tax Rules
1. Standard Deduction of Rs 40,000 for Salaried and Pensioners
2. Transport Allowance & Medical Reimbursement No more tax exempt for salaried
3. Cess hiked from 3% to 4% (renamed as Health & Education cess)
4. Rs 50,000 interest income for senior citizens tax exempted under newly introduced Section 80TTB
5. Health Insurance Premium Tax exemption limit increased to Rs 50,000 u/s 80D for senior citizens
6. Increased deduction for medical treatment u/s 80DDB for senior citizens up to Rs 1 lakh
7. 10% tax on long-term capital gains (above Rs 1 Lakh) on stocks & equity-based mutual funds. Also, 10% dividend distribution tax imposed on the dividend paid by equity mutual funds.
