India has witnessed its first post GST (Goods and Service Tax) budget; Budget 2018. The budget this year was highly disappointing for people as there is no change has been introduced in the tax slabs. It has in turn raised the liability of citizens except some categories such as senior citizens. The senior citizen tax has come down by almost Rs. 15, 450 due to the tax exemption for up to Rs. 50, 000 interest earned from bank deposits and Post Office Schemes.
Other than few of these exceptions, the budget has hiked the percentage on tax from 3 % to 4 % for all tax payers. According to this, a tax payer who earns 60 lakh in a year will pay Rs. 13,354 more in tax and on the other hand a high – income tax payer who earns nearly 1.2 crore will pay 33,868 more.
On this matter, one of the dealers said that
However, in the budget, Arun Jaitley has announced that standard deduction of Rs. 40,000 will be granted for salaried individuals.
Let us look at the below mentioned chart to see the impact of budget 2018 on tax:
- Retired Pensioner
Income 9 Lakh
Sec 80 C 1.5 lakh Medical Insurance 30,000 Existing Tax 55,620 After Budget 41,600
Savings In Tax – 14,020
- Low – Income Earner – Negligible Tax Cut, Gross Income – Rs. 6 lakh
Sec 80 C 1.5 lakh NPS Contribution 50,000 Medical Insurance 15,000 Existing Tax 6,953 After Budget 6,718
Savings In Tax – 234
Mid Income with Home Loan, Gross Income – Rs. 12 lakh
Sec 80 C 1.5 lakh NPS Contribution 50,000 Medical Insurance 20,000 Home Loan 2 lakh Existing Tax 70,555 After Budget 70,033
Savings In Tax – 521
- High Income Earner, Gross Income – Rs. 60 lakh
Sec 80 C 1.5 lakh NPS Contribution 3.5 lakh Medical Insurance 25,000 Home Loan 2 lakh Existing Tax 15.81 lakh After Budget 15.93 lakh
Additional Tax Payable – 13,354
- Very High Income Earner, Gross Income – Rs. 1.2 Crore
Sec 80 C 1.5 lakh NPS Contribution 5.5 lakh Medical Insurance 55,000 Home Loan 2 lakh Existing Tax 37.02 lakh After Budget 37.36 lakh Additional Tax Payable – 33,868