Budget 2018 Highlights: No Change In Income Tax Slabs, Introduces Standard Deduction

Finance Minister Arun Jaitley introduced standard deduction of Rs 40,000 for the salaried class.

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Budget 2018 Highlights: No Change In Income Tax Slabs, Introduces Standard Deduction

Budget 2018: Taxpayers will watch Arun Jaitley's speech closely for any tax sops in income tax

Finance Minister Arun Jaitley has proposed no new changes in income tax rates applicable to individual. The finance minister, however, introduced standard deduction of Rs 40,000 for the salaried class. Standard deduction allows for a flat deduction from income of a salaried individual towards expenses that would incur in relation to his or her employment. The government has made many positive changes in individual tax rates in past three years, Mr Jaitley said, delivering his Union Budget 2018-19 speech in Parliament on Thursday.

This is the first Budget after the rollout of GST, which came into force from July 1. Check out live updates on Union Budget 2018-19 and market movement here.
 

Here are latest updates on income tax announcements in Union Budget 2018:




Feb 01, 2018
16:54 (IST)
Finance Minister Arun Jaitley mentioned three benefits to the middle class: 
  1. This is the first time the contribution of salaried class has been singled out (in total 2.5 crore people); the salary class has been given a standard deduction of Rs 40,000
  2. Senior citizens, a very imp part of the middle class, have been given additional avenues of investment
  3. All businesses with a turnover up to Rs 250 crore - a key part of middle class - will now pay 5 per cent less tax
Feb 01, 2018
16:20 (IST)
"Long-term capital gain was being debated for years... We believe that no tax should have retrospective effect that's why we grandfathered all investment till 31 Jan 2018," says Finance Minister Arun Jaitley, in a press conference after presentation of Union Budget for financial year 2018-19.
Feb 01, 2018
16:19 (IST)
"Bringing back a standard deduction will help the salaried class... We announced tax relief and investment benefits to senior citizens as well," said Finance Minister Arun Jaitley in a press conference. 
Feb 01, 2018
16:14 (IST)
Finance Minister Arun Jaitley in Budget 2018 did not change the income exemption limit or the income tax rates applicable to different slabs. However, he introduced a number of changes that will impact the income tax you pay. Here's a look at five changes relating to income taxannounced by the finance minister in the Budget 2018, which spoke of an increased spending on rural infrastructure and higher minimum support prices for farmers also announced plans to launch the world's largest healthcare programme that will cover 10 crore families. (Also readFull text of Arun Jaitley's speech on Union Budget 2018-19)
Feb 01, 2018
15:18 (IST)
Finance Minister Arun Jaitley did not change the income exemption limit or the income tax rates applicable on different slabs. However, he introduced a number of changes that will impact the income tax you pay. These range from tax on long-term capital gains on stock and equity mutual fund  investments to change in cess on income tax. (Read more)

Feb 01, 2018
14:32 (IST)
Finance Minister Arun Jaitley will on Thursday evening address questions on the Union Budget 2018-19 -  the last full year budget by the government before the general elections due in 2019 - on microblogging site Twitter. Mr Jaitley will answer questions on Twitter starting 7 pm on February 1, according to a post by the Ministry of Finance. Users can post their queries on budget through Twitter posts using hashtag '#AskYourFM', according to the finance ministry. 


Feb 01, 2018
14:27 (IST)
"This is one of the most populist budgets. If the government means to implement all the social, rural and infrastructure expenditure plans at very small changes on the tax front, I certainly have some concerns for the fiscal deficit target for the next year," said Arun Singh, lead economist, Dun & Bradstreet. (ReadWhat experts say on Budget 2018)
Feb 01, 2018
14:23 (IST)
With an aim to incentivize employment of more women in the formal sector and to enable higher take-home wages, Finance Minister Arun Jaitley propose to reduce women employees' contribution to 8 per cent for first three years of their employment. Currently, a rate of 12% or 10% with no change in employers' contribution is applicable. 

Feb 01, 2018
14:04 (IST)
To ensure more take-home salary for women, the EPF (Employees' Provident Fund) for women employees has been reduced to 8%, says PM Modi
Feb 01, 2018
13:57 (IST)
"I congratulate the finance minister and his team for a budget that ensures ease of living and strengthens the foundation of New India," PM Narendra Modi said. 
Feb 01, 2018
13:46 (IST)
Tax experts say that reintroduction of standard deduction will help salaried employees get some parity with respect to businessmen and other self-employed professionals, who can claim a number of expenses such as rent, staff expenses and driver's salary etc. as business expenditure and reduce tax burden. 
Feb 01, 2018
13:29 (IST)
Tax buoyancy more than expected, thanks to greater compliance: Arun Jaitley in Budget 2018 speech (Read full speech here)
Feb 01, 2018
13:23 (IST)
Finance Minister Arun Jaitley proposed to bring listed entities under long-term capital gains tax. Currently, profits from stock and equity mutual fund investments held for more than 12 months are tax exempt. 

Under the new proposal, long-terms capital gains made on investments up to January 31, 2018 will not be taxed, the finance minister said on Thursday.
Feb 01, 2018
13:01 (IST)
Strong case for long-term capital gains from equities, 10% tax on long term capital gains in excess of Rs 1 lakh, says Finance Minister Arun Jaitley, while presenting Union Budget 2018-19
Feb 01, 2018
13:00 (IST)
Finance Minister Arun Jaitley announces tax on distributed income of equity oriented mutual funds at rate of 10%
Feb 01, 2018
12:59 (IST)
Health and education cess increased to 4% from 3%, to collect additional Rs 11,000 crore, says finance minister
Feb 01, 2018
12:57 (IST)
Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakh, says finance minister 
Feb 01, 2018
12:52 (IST)
Finance Minister Arun Jaitley proposed to reintroduce standard deduction of Rs 40,000. According to the new proposal, salaried individuals will get a standard deduction of Rs. 40,000 on income in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses. 
Feb 01, 2018
12:51 (IST)
Senior citizens allowed Rs 50,000 deduction on health insurance premium paid per year, from Rs  30,000 earlier: Arun Jaitley 

Feb 01, 2018
12:50 (IST)
Rs 8,000 crore revenue lost due to standard deduction allowed to salaried employees, says finance minister 
Feb 01, 2018
12:49 (IST)
Finance Minister Arun Jaitley mentioned a huge increase in tax returns filed. 85.51 lakh people filed returns in 2017-18, he said, as against 66.26 lakh in 2016-17, Mr Jaitley said. 
Feb 01, 2018
12:47 (IST)
Rs 90,000 crore additional income tax collection in 2016-17 and 2017-18 due to measures against tax avoidance: Arun Jaitley
Feb 01, 2018
12:34 (IST)
Government has made many positive changes in individual tax rates in past three years, therefore no change this year: Arun Jaitley on income tax 
Feb 01, 2018
12:30 (IST)
12.6% growth in direct taxes in FY18, says Finance Minister Arun Jaitley


Feb 01, 2018
12:18 (IST)
Finance Minister Arun Jaitley announced that the government will contribute 12 per cent of wages of new employees in employee provident fund for all sectors for the next three years. Aimed at promotion of employment, the finance minister said the move will also help in promoting job creation. Contributions from women employees will be brought down from 12 per cent to 8 per cent, he said. (Read more)

"I am happy to announce that the Government will contribute 12% of the wages of the new employees in the EPF for all the sectors for next three years. Also, the facility of
fixed term employment will be extended to all sectors," the finance minister said in his Budget 2018 speech.

Watch this section for announcements on income tax sops.
Feb 01, 2018
11:48 (IST)
In Budget 2017-18, the finance minister had reduced the tax rate for income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent. However, he reduced rebate under Section 87A from Rs. 5,000 to Rs.2,500. Among other changes, he had also introduced a surcharge of 10 per cent on tax for income between Rs. 50 lakh and Rs. 1 crore.

It remains to be seen whether Mr Jaitley announces any income tax sops this year.
Feb 01, 2018
11:13 (IST)
"Recapitalised banks have an ability to support growth. Indian economies have performed well since our government took over. India is expected to become the fifth largest economy very soon... This year's budget will focus on consolidation and agriculture, infrastructure and healthcare," Finance Minister Arun Jaitley said in Parliament, presenting the Union Budget for financial year 2018-19. Check out latest updates here.

Feb 01, 2018
11:09 (IST)
Finance Minister Arun Jaitley rises in Parliament to present the Union Budget for financial year 2018-19. Taxpayers will watch Mr Jaitley's budget 2018 speech closely for any updates in income tax rates, slabs or rules. 
Feb 01, 2018
11:04 (IST)
Finance Minister Arun Jaitley is expected to increase the minimum exemption limit from the current level of Rs. 2.5 lakh to Rs. 3 lakh per annum, says Sandeep Sehgal, director of tax and regulatory at Ashok Maheshwary & Associates LLP. Such a move by the government will give more purchasing power in the hands of common people and small entrepreneurs, Mr Sehgal adds. (Read more)
Feb 01, 2018
11:01 (IST)
Tax experts say that reintroduction of standard deduction will help salaried employees get some parity with respect to businessmen and other self-employed professionals, who can claim a number of expenses such as rent, staff expenses and driver's salary etc. as business expenditure and reduce tax burden. 
Feb 01, 2018
10:52 (IST)
According to a survey by tax and advisory firm EY, Finance Minister Arun Jaitley may tweak income tax slabs and rates in Budget 2018. Mr Jaitley will present the Budget 2018 at 11 am in in Parliament today. A wide majority of 69 per cent of the respondents felt that the threshold limits for taxation could increase to boost disposable income in the hands of the people. In the last Budget, the finance minister had left the slabs unchanged but gave a marginal relief to the small taxpayer. (ReadHow Modi government has changed income tax structure)
Feb 01, 2018
10:44 (IST)
Tax-saving fixed deposits or FDs are a special category of bank fixed deposits that can help individuals claim deductions under Section 80C of the Income Tax Act. Hwoever, the interest earned on these income-tax saving deposits is taxable. These tax-saving bank fixed deposits have a minimum lock-in period of five years. (Read more)
Feb 01, 2018
10:26 (IST)
Many tax experts have suggested the government raise the Section 80C limit under the Income Tax Act in Budget 2018-19. This will help in increasing savings of individuals. Many tax saving instruments like PPF, ELSS etc are eligible for Section 80C deductions. Some experts have also suggested that the government reduce the tenure of tax-exempted retail term deposits (tax saver fixed deposits) to minimum of three years from current five years.
Feb 01, 2018
10:22 (IST)
Tax experts have suggested that the government include more cities under the category for higher deductions. Employees who stay in four metropolitan cities - Mumbai, Delhi, Kolkata and Chennai - are allowed higher deduction. "The rental charges for a house in cities like Bengaluru or Hyderabad are not less in contrast to four metropolitan cities. Therefore, the government should also include many other cities in the category of higher exemptions for HRA in cities like, Bengaluru, Hyderabad, Pune, Ahmedabad, Jaipur, Noida, Gurgaon etc," says Naveen Wadhwa, DGM at Taxmann.
Feb 01, 2018
10:16 (IST)
The government could also consider doing away with the dividend distribution tax (DDT) in Budget 2018 to be unveiled later today, EY India had said earlier. Dividends paid by a domestic company to shareholders are subjected to dividend distribution tax at 15 per cent of the aggregate dividend declared. After including surcharges and cess, it goes up to 20.35 per cent. Dividend however is not subjected to tax in the hands of investors. (Read more)
Feb 01, 2018
09:53 (IST)
Budget 2018-19: Chambers of commerce have suggested Finance Minister Arun Jaitley to reintroduce the standard deduction for salaried employees of at least Rs. 1 lakh. If it is reintroduced for salaried employees, it will be a big relief for salaried employees and it will replace several outdated deductions. Standard deduction, which was available to the salaried individuals on their taxable income, was abolished with effect from assessment year 2006-07. 
Feb 01, 2018
09:49 (IST)
There are expectations that the government could reintroduce standard deduction for salaried class. Standard deduction allows for a flat deduction from income of a salaried individual towards expenses related to his or her employment. The government may also raise the minimum income tax exemption limit to Rs 3 lakh, from Rs 2.5 lakh currently. (Read more)
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