India

5 Income tax rules will change from April 1, All you should know

Written by Abhishek Lohia

Finance Minister Arun Jaitley had introduced several changes in the general budget for 2018-19 on February 1. All these changes will be effective from April 1, 2018. In such a situation, knowing all these rules in the new financial year is important for everyone. These include long-term capital gains tax, standard deduction and more cess on income tax. That is, the rules will directly affect your salary. Various changes have also been made in the rules for senior citizens.

Medical re-inbursement will be over- Salaries and pensioners will get the benefit of standard deduction of Rs 40,000. Rs 15,000 Medical Re-Incorporation and Rs 19,200 along with Transport facility has been withdrawn.

4% cess instead of 3%- on income tax Instead of 3% on income tax, 4% will be health and education cess. Taxable income is Rs 5 lakhs If so, cess 125 Will look more. The liability for taxable income of Rs 15 lakh will increase to Rs 2,625.

Insurance- If a single premium policy is for more than one year, then every year, you can deduct tax on premium in the same ratio. For example, if you paid a premium of Rs 40,000 for a two-year insurance cover, you would be able to get a tax deduction for two years 20-20 thousand rupees. There is a limit of Rs 25,000 now.

Investment– A) 10% Long Term Capital Gains Tax: Investments of more than one year will be 10% tax on profits and 4% cess on this. There was no tax on long-term investment so far. In one year if the capital gains are up to one lakh rupees, then the tax will not be charged. Dividend income will also be 10% tax: Equity mutual funds will be taxed at a rate of 10% on the dividend. The mutual fund company will deduct the tax amount when giving the dividend to the investor. The investor will not be responsible for the collection of tax.

Tax-free for up to Rs 50,000: Interest will be tax-free at Rs 50,000 on bank and post office deposits (FD, Recurring) for Senior Citizens. So far, interest up to Rs 10,000 was tax-free. Investment limit doubled in age Vandana scheme: Under the Prime Minister Yadna Yojana, the investment limit has been increased from 7.5 lakh to 15 lakh rupees. This scheme has been extended till March 31, 2020. The scheme offers a fixed interest of 8% on deposits.

E-way bill- E-way bill will be required to carry goods from one state to another. If the value of the goods kept in the car is less than Rs. 50,000 then the bill should not be billed. Tax-exempt items will not be included in the price. Besides the supplier, transporter, courier agency and e-commerce operator can also generate bills.

SBI Minimum balance charge will take less- SBI has reduced the charge for not having average monthly balance in the bank account. New rates will be effective from 1st April. Rs 50 in urban areas Instead of Rs 15, in the semi-urban areas Rs. And Rs 40 in villages-towns, Rs 10 Will Happen. 18% GST will also be charged on this fee.

Third party insurance premium reduction on the car- Private car Ability old rate new rate 1,000 cc Rs 2,055 Rs 1,850 1000-1,500 3,132 Rs 2,863 More than 1,500 8,630 rupees 7,890 Two wheeler Ability old rate new rate 75 cc 569 Rs 427 75-150 cc 720 Rs 720 150-350 970 rupees 985 More than 350 Rs 1,114 Rs 2,323

About the author

Abhishek Lohia

Abhishek Lohia is a Sports and Political Writer at Newsfolo. He has been working as a Journalist for 2 years and has previously worked at Sportsflu, Sportscafe, and some other Digital Channels. He covers the ruling BJP Government, civic bodies, and Indian politics. He also covers latest Sports News and Live Coverage. He is a graduate in Electrical Engineering from IPEC College, Sahibabad. He can be reached at; [email protected], you can also follow him on twitter @chiraglohia2

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