What 22 changes will this April 1 bring in your lives? Check here
Lucknow: 'April 1' is widely celebrated as 'All Fool's Day' across India as well as the world. But the day has other significance also for Indians as from Sunday onwards numerous things will change for every commoner here.
Newstrack brings you the biggest changes every person is going to face in his/her daily life:
Effect on Taxes:
The new budget will come into effect from tomorrow which also includes eight major tax reforms which are mentioned below.
- Standard Deduction: Normal working class people will get standard deduction of Rs 40,000, but transport and medical allowances will be revoked.
- Four per cent Education Cess: Education Cess will be increased from three per cent to four per cent.
- No tax on NPS: Self-employed NPS account holders will not have to pay tax on 40 per cent of the total fund on time of closing the bank account. So far, this facility was only given to salaried people.
- Tax on Share market earnings: Ten per cent LTGS tax will have to be paid in condition of earning more than Rs 1 lakh from long-term capital gain through investment in equity linked funds.
- More tax rebate on Health Insurance Plan: The insurance companies give some discount to the people who have been submitting their installments timely for years. Earlier, the insured persons could claim tax deduction on amounts over Rs 25,000, but from April 1, 2018, exemptions will be allowed in proportion with insurance period. It means that if the insured person has paid Rs 20,000 premium twice in two years, he/she will be entitled to tax rebate on Rs 40,000.
Apart from these general tax reforms, the Modi government is eyeing blessings of elderly people through providing them some tax benefits. Here are the three benefits elderly people will get:
- Tax rebate on medical treatment expenses: The tax exemption on some serious diseases has been increased from Rs 60-80 thousand to Rs 1 lakh.
- Tax reduction on earnings from investments: No tax will be applied if elderly people get up to Rs 50,000 as interest from their savings in bank or post office accounts.
- Extension of Pradhan Mantri Vaya Vandana Yojana: The investment has been doubled from Rs 7.5 lakh to Rs 15 lakh under this central government scheme being run for providing pension to the senior citizens. This facility provides 8 per cent interest.
April will also bring some relief to the people:
- While presenting the budget for 2018, Finance Minister Arun Jaitley had announced to reduce interest rate on home loan, which means that buying home will become cheaper in the next upcoming financial year.
- The service charge on rail ticket booking will also be reduced from April 1.
- The leather products will also become cheaper from this financial year.
- Parcel facility will also become cheaper.
- The prices of RO purifiers will be reduced from April 1.
Things to get dearer from April 1, 2018:
- Insurance of car, motorcycle or commercial vehicles is going to be costlier.
- LED lightings will become dearer and an additional 6 per cent tax will be imposed on the raw material used to make LED lights.
- The toll tax will be increased by 2-3 per cent.
- The silver and steel utensils will become dearer.
- The cigarette is also going to be costlier as the Excise Duty on per thousand cigarettes has been increased from Rs 215 to Rs 311.
Other important changes this new fiscal year will bring:
- Transporters will have to carry e-way bill from carrying goods worth more than Rs 50,000 from one state to another. This reform does not include goods which have been kept out of tax regime.
- Third-party insurance premium will be decreased on cars.
- SBI has decreased the charge on not maintaining minimum balance.
- MCLR benefit will be given to the people who have taken loan on base rate. The monthly changes in MCLR by banks will automatically change the EMI every month.