INDIVIDUAL / PERSONAL TAXATION

1. No changes in personal income tax rates & slabs
2. Cess will be referred as “Health and Education cess” & effective rate increased to 4%.
3. Variation in stamp duty value & sale consideration of immovable property to extent of 5% of sale consideration is proposed to be accepted from FY.18-19.
4. Standard deduction upto Rs. 40,000/- is introduced against Transport Allowance (for other than handicap person) and reimbursement of medical expenses which is proposed to withdraw
5. LTCG above Rs. 1 lakh on legitimate sale transaction of equity shares shall be taxed @ 10% without giving benefit of indexation. All gains upto 31.1.2018 are grandfathered. Tax applicable on sale from FY.18-19
6. Crypto currencies continued to be considered as not “legal tender”.
7. E-assessment is proposed to reduce interface between income tax department and taxpayers.
8. Benefit of tax-free withdrawal upto 40% from National Pension system (NPS) is extended to non-employee subscribers
9. Deemed dividend in form of loans and advance by Company will be subject to DDT @ 30% from 1^st April 2018
10. Consequences of disallowance for non-deduction of TDS or payment in mode other than cash exceeding 10,000/- till also be applicable to Charitable Trust and Institution
11. Any compensation whether revenue or capital, in connection with termination or modification of the terms of any contract relating to its business or employment shall be taxable
12. Trading of agricultural commodity derivatives in a registered stock exchange will be treated as non-speculative transaction
13. Conversion of stock in trade to capital asset is subject to taxation and holding period of capital asset shall be from the date of conversion
14. Exemption of 54EC i.e. investment in capital gain bonds restricted to transfer of land and building and investment period extended to five years
15. All entities other than individuals and their office bearer enters into financial transaction above 2.50 lacs in financial year are required to obtain PAN

For Senior Citizens

1. Interest on deposit up to Rs 50,000 is not taxable & not subject to TDS.
2. Exemption under Section 80D available upto Rs 50,000 for medical insurance u/s 80D. Deduction will be spread over insurance tenure for single premium insurance
3. Exemption limit for medical expenditure for certain critical illness 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.