The Union has embodied changes in the budget for FY 2018-2019 that impact the income tax calculations w.e.f April 2018.
After enabling the budget updates, the following budget Changes for FY April 2018-2019 are applied.
- 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 of Parents (whether dependent or not) No one has attained age of 60 Years 25,000 25,000 50,000 You and your family is less than 60 years of age and parents are above 60 25,000 50,000 75,000 You and your parents have attained the age of 60 years and above 50,000 50,000 1,00,000
The limit for medical treatment of specified diseases is raised to ₹1,00,000/- for all senior citizens(Includes very senior citizens also)
Under this section, not just the interest on savings bank but Post Office and Cooperative Society is also to be covered.
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.
The education cess is increased from 3% to 4%, where 1% is the new Health cess.
Standard Deduction of Rs. 40,000
Conveyance and Medical exemptions are removed and introduced as a standard deduction of Rs. 40,000.
Here is a bill of all the budget changes for the FY 2018-2019.