5 Ways In Which The New Budget Will Help You Save In Income Tax

Only 2.5 percent of the Indian population constitutes of the total taxpayers since India is a developing country and only those with an annual income of Rs. 2.5 lakh are supposed to be paying income tax for the services and facilities that the country provides its citizens.

Budget 2018 was announced on February 1 and even though there is not any change in the tax slabs which was highly anticipated, there are other ways in which the new budget can help you save in the direct and corporate income tax.



1. Standard Deduction of Rs. 40,000

Standard deduction has been introduced because according to the government, the business class had it better than the salaried class and thus in the position of the transport allowance and medical reimbursements, this standard deduction of Rs. 40,000 is introduced which will let each taxpayer save on the income tax.

2. Corporate tax of 25% extended to companies

In benefit to the corporate sector, companies with a total turnover of 250cr or more will be benefitted as 25% tax is extended to such companies.



3. Housing loan will help reduce tax bill

You can use the interest on your house loan as a deduction. Along with the interest paid in the current year, you can take additional tax deduction during the construction year. This advantage can be used up to 5 years from the purchase of the property until the end of construction.

4. Increased deduction of tax for Senior citizens

All senior citizens can claim the benefit of Rs. 50,000 per annum with respect to any health insurance or general medical expenditure.



5. 100% tax deduction to farm cooperatives

According to the latest issue of budget, 100% tax deduction will be offered to companies registered as farmer producer companies with a turnover of 100cr or above for 5 years.

About the author /

Ashmita is an ardent writer who loves to cover the emotions and write about facts, lifestyle and travel, her hobbies include reading and dancing. She is a fun-loving person whose sole purpose is to explore life as it follows. An appreciator of whimsical humor.

Latest Post

Random Articles

Latest Story