October 24, 2020

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Income Tax Software

Free Download Automated Income Tax Form 16 Part A&B for F.Y. 2018-19 With Budget 2018 – Changes in the Income Tax Laws for AY 2019-20

the government introduced the Union budget on February 1, 2018, it
opened up some new avenues to save taxes. The government made various
amendments in the tax laws to give some relief to the taxpayers. This
article by H&R Block India will help you understand the 5 new or amended tax benefits announced by the government in the Union Budget 2018.

1) Standard deduction to salaried individuals and pensioners

allowance and medical reimbursement are two tax deductions which almost
every salaried taxpayer easily claims. The Finance Act, 2018 eliminated
these two tax benefits. The tax benefit from the transport allowance is
Rs 19,200 p.a. (Rs 1,600 p.m.), while from reimbursement of medical
expenses, it is Rs 15,000 p.a. At first, it may appear to be a loss of
Rs 34,200 to you (Rs 19,200 + Rs 15,000). But, you don’t need to worry
as a standard deduction of Rs 40,000 has been brought in their place.
This is, in fact, a piece of good news for you since the overall tax
benefit has increased by Rs 5,800 (Rs 40,000 – Rs 34,200).
tax benefit has also been extended to the pensioners. Pensioners were
not allowed any tax benefit of transport allowance and medical
reimbursement. Therefore, they can gain Rs 40,000 as tax-free income.

2) Enhanced deduction under section 80D

must be familiar with this deduction under section 80D that you can
claim when you pay a premium for medical insurance giving coverage to
you or your family. The tax deduction currently allowed is up to Rs
30,000 of the insurance covers you, your spouse or your children. You
can get an additional deduction of Rs 30,000 on premium paid if you have
a medical cover for your parents aged 60 years and above. If they are
aged below 60 years, then the tax deduction cannot exceed Rs 25,000.
if anyone of you, your spouse or your parents is not covered under any
insurance policy, then you can claim a tax deduction up to Rs 30,000 for
the medical expenses incurred on them. Union budget 2018 has extended
this benefit to senior citizens as well and increased the deduction
limit from Rs 30,000 to Rs 50,000.

A summary of deduction allowed under section 80D is explained in the table below

Nature of the amount spent
Family Member
Age below 60 years
(value in Rs)
Age above 60 years
(value in Rs)
Age below 60 years
(value in Rs)
Age above 60 years
(value in Rs)
A) Medical Insurance
B) Central Govt Health Scheme
C) Health Check-up*
D) Medical Expenditure
Maximum deduction
the Finance Bill additionally suggests that if there should be an
occurrence of single premium medical coverage strategies which give
inclusion of over a year, the derivation will be permitted on a
proportionate reason for every one of those years for which medical
coverage inclusion is given, subject to the predetermined financial
breaking point.
3) Increase in as far as possible under segment 80DDB
assessment conclusion given to citizens for costs caused by the
treatment of his own or any relative’s basic disease has additionally
been raised. Right now, the duty derivation is Rs 80,000 for overly
senior native, Rs 60,000 for a senior subject and Rs 40,000 in some
other case.
furthest reaches of reasoning has been expanded to Rs 1 lakh for both
senior just as excessively senior natives yet the breaking point
continues as before for the citizens as long as 60 years old.
4) Increase in exclusion limit on bank enthusiasm for senior natives
the AY 2019-20, senior subjects will most likely case derivation up to
Rs 50,000 on premium earned from bank stores, post workplaces or
co-employable banks according to the arrangements of another segment
80TTB of the Income Tax Act, 1961. Any senior subject who asserts the
duty finding under segment 80TTB won’t be permitted to guarantee the
advantages of area 80TTA from AY 2019-20. Segment 194A has additionally
been revised to prohibit banks from deducting the charge from an
installment of enthusiasm up to Rs 50,000 made to a senior resident.
5) The enhanced tax cut on the tip
duty exclusion permitted on tip has likewise been expanded in the Union
spending plan 2018. The citizens as of now get an expense exception of
Rs 10 lakh which will be raised to Rs 20 lakh. The citizens getting a
tip on or after first April 2018 will almost certainly appreciate the
expanded tax cut on a tip.
6) NPS withdrawal exception stretched out to non-representatives
putting resources into NPS get exclusion up to 40% of the all-out
collected parity in their NPS account at the season of withdrawal when
they quit or close the plan. The financial plan 2018 has stretched out
this tax reduction to everybody putting resources into NPS.

Free Download Automated Income Tax Form 16 Part B for F.Y. 2018-19 [ This Excel Utility can prepare One by One Form 16 Part A&B and Form 16 Part B for F.Y. 2018-19]

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