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The Union has embodied changes in the budget for FY 2018-2019 that impact the income tax calculations w.e.f April 2018.

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Please note that you will be able to see the Budget Updates banner only if you have created the payroll month for April 2018.

The budget changes are not enabled by default. You can enable these changes w.e.f April 2018 payroll in the following sections:

  1. Navigate to Payroll > Payroll Inputs > Salary
    OR
  2. Navigate to Payroll > Process > Payroll Process
  3. Click the Enable button in the Budget Updates banner to enable the budget changes for the FY 2018-19.

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    If you process payroll for the month of March 2018 or earlier, the previous IT budget for FY 2017-2018 is applied.


  4. To revert to the previous IT budget FY 2017-18, click the Revert button.

After enabling the budget updates, the following budget Changes for FY April 2018-2019 are applied.

  1. Section 80D

    The limit is raised to ₹50,000/- for all senior citizens

    Deductions under Section 80 D

     

    Situations Based on Age

     

    Eligible deduction limits (up to Rs.)


    Total eligible deduction limit under Section 80D (up to Rs.)

    (including Rs. 5,000 on preventive health checkup)

    Medical insurance Premium paid in respect of
    Medical insurance Premium paid in respect ofParents (whether dependent or not)
    No one has attained age of 60 Years25,00025,00050,000
    You and your family is less than 60 years of age and parents are above 6025,00050,00075,000
    You and your parents have attained the age of 60 years and above50,00050,0001,00,000


  2. 80DDB
    The limit for medical treatment of specified diseases is raised to  ₹1,00,000/- for all senior citizens(Includes very senior citizens also)

  3. 80TTA
    Under this section, not just the interest on savings bank but interest on FDs, Post Office and Cooperative Society is also to be covered.

  4. 80TTB

    Senior citizens are removed from the ambit of 80TTA and added under a new Section 80TTB. This section provides deduction up to Rs. 50,000 /- in respect of interest on income from deposits in banks, cooperative society and post office for senior citizens.

  5. Education Cess

    The education cess is increased from 3% to 4%, where 1% is the new Health cess.

  6. Standard Deduction of Rs. 40,000
    Conveyance and Medical exemptions are removed and introduced as a standard deduction of Rs. 40,000.

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