New Delhi: Finance Minister Arun Jaitley on Thursday announced that there will be no changes in the personal income tax slabs this year.
However, in a relief to salaried class, Jaitley in his budget speech proposed to allow a standard deduction of Rs 40,000 in lieu of transport and miscellaneous medical expenses. This will boost the take-home pay of the middle class, the finance minister added.
He lowered the corporate tax for small, micro and medium enterprises with turnover of up to Rs 250 crore to 25 per cent from current 30 per cent, while reintroducing the tax on long-term capital gains of over Rs 1 lakh made from the sale of shares.
Jaitley also announced a slew of tax deductions for senior citizens with extending the Pradhan Mantri Vaya Vandana Yojana (PMVVY) till March 2020.
He further proposed to raise the deduction under health insurance premium to Rs 50,000. In case of senior citizens with critical illnesses, the deduction will be Rs 1 lakh. Fixed deposits and post office interest will be exempted till Rs 50,000 and 80D benefit has also been enhanced to Rs 50,000.