Key Highlights About Union Budget 2018

Individuals and salaried class

Personal income tax slab rates remains the same Introduction of Standard deduction of Rs 40,000 for the salaried class (replacing the transport allowance and the miscellaneous medical Reimbursement) Education cess now to be called as Health and Education cess effective rate increased to 4% from 3% Introduction of tax on long term capital gains above Rs 1 lakh on sale of equity shares @ 10% without giving the benefit of indexation. Capital gains tax for until 31 January 2018 will be grandfathered

For senior citizens

No TDS on interest from FD upto Rs 50,000 Exemption under Section 80D upto Rs 50,000 for medical insurance for senior citizens Exemption limit for medical expenditure for certain critical illness from raised from Rs 60,000/- in case of senior citizens and from Rs 80,000 in case of very senior citizens, to Rs 1 lakh in respect of all senior citizens, under section 80DDB.

Other announcements

Reduction in corporate tax rate to 25% for companies having a turnover of Rs 250 crores and less Equity Oriented Mutual funds to face a Dividend Distribution Tax @ 10% Short term capital gains to continue to be taxed @ 15% Cryptocurrencies continued to be considered as not "legal tender". Government to consider exploring the Blockchain technology Introduction of e-assessments to reduce interface between income tax department and taxpayers