Finance Minister Arun Jaitley on Thursday did not provide any relief in the income tax rates for 2018-19. “The government had made many positive changes in the personal income-tax rate applicable to individuals in the last three years,” Jaitley said in his Budget speech.
Budget Highlights 2018-19 – SGC
Key Changes Budget 2018-2019
(Only considered main changes for Payroll Management)
- Health and education cess has been increased to 4 per cent,
Unchanged Investment deduction limit under section 80C,
Standard deduction of Rs 40,000 for salaried employees in lieu of transport allowance (1600per month, 19200 annual ) and medical expenses (1250 per month, 15000 annual),
For senior citizens, exemption u/s 80TTB of interest income on bank deposits raised to Rs 50,000.00 from current 10,000,
80D maximum deduction limit raised to Rs 50,000 to senior citizens for investment in healthinsurance premium from current 30,000,
80DDB Medical expenditure in respect of certain critical illness from Rs. 60,000/- in case ofsenior citizens and from Rs. 80,000/- in case of very senior citizens, to Rs. 1 lakh in respectof all senior citizens.
Government to contribute 12 per cent of EPF contribution for new employees in all sectors,
Government makes PAN mandatory for any entity entering into a financial transaction of Rs 2.5 lakh or more.
