The Finance Minister announced an increase in customs duty, which will majorly hit the middle-class.
Since birth I have seen two types of budget!!
1. Bad Budget and nothing for middle class!
2. Good Budget but nothing for middle class!#Budget2018
Arun Jaitley announced an increase in the customs duty on mobile phones from 15 per cent to 20 per cent.
Customs duty on mobile phone and TV parts and accessories has been increased to 15 per cent.
The income tax rates and slabs unchanged
Stating the standard deduction would benefit 2.5 crore people, Jaitley said there would be no further changes to personal tax slabs. He said this would cost the exchequer Rs 8,000 crore.
The Finance Minister also announced that senior citizens can claim Rs 50,000 for general medical expenditure.
The standard deduction, which is provided to the salaried, was discontinued from the assessment year 2006-07.
Experts said this was a nominal benefit to the salaried class.
“Standard deduction of Rs 40,000 a year for salaried individuals seems to be a very nominal benefit as the current tax-free limit
For the senior citizen, up to 60 years, there is no tax till Rs 3 lakh, 20 per cent on income between Rs 3 to Rs 5 lakh, and 30 per cent for Rs 10 lakh and above.
For the ‘super senior citizen – aged above 80 years, the tax slabs are – nil up to Rs 5 lakhs, 20 per cent for Rs 5 lakh to Rs 10 lakh, and 30 per cent above Rs 10 lakh.
Section 80C: Section 80C of the Income Tax Act provides for an individual to get benefits of up to Rs 1.5 lakh with investments in provident funds, tax-saving mutual funds, National Savings Certificate, Sukanya Samriddhi Account etc. Tuition fees to two children also save money under this category.
Section 80CCD: It provides deduction up to Rs 50,000 for investment in an NPS Tier 1 account. This deduction is additional to the deduction available in Section 80C.