Finance Act 2018 – 26 Key Amendments You Must Know. It will help you lot for preparation for Income Tax Returns, TDS Returs, TCS Return, Calculating Capital Gains for A.Y. 2019-20.
You can check key changes for A.Y. 2018-19 here – 21 Key Changes You Must Consider While Filing IT Return for A.Y.2018-19
#1) No change in basic exemption limit and income slabs.
#2) Surcharge to continue at existing rates.
#3) Education Cess @ 2% and Secondary & Higher Education Cess @ 1%, merged and enhanced into a single Health & Education Cess @ 4%.
#4) Income of a non-resident by way of royalty/fees for technical services from National Technical Research Organisation to be exempt. [Sec. 10(6D)]
#5) 40% of amount payable from National Pension System on closure/ opting out, to be exempt in case of all assessees. [Sec. 10(12A)]
#6) Salaried tax payers to be allowed standard deduction of Rs. 40,000 or the , amount of salary, whichever is less. [Sec. 16(ia)]
#7) Fair market value of inventory treated as a capital asset to be taxed as ‘business income’. [Sec. 28(via)]
#8) Stamp duty value of an immovable property held as stock-in-trade, to be considered for computing income from its transfer, only if such stamp duty value exceeds by 5% or more of the actual consideration.[Sec. 43CA]
#9) Special provisions introduced for computing income from construction and service contracts. [Sec. 43C13]
#10) Income of truck owners, under estimated income scheme, to be computed for heavy goods vehicle at Rs. 1000 per ton of the gross weight of the vehicle for each month. [Sec. 44AE]
#11) Cost of acquisition of an inventory treated as/converted into capital asset shall be deemed to be its fair market value as on the date of its [Sec. 49(9)]
#12) Stamp duty value of an immovable property transferred, to be treated as full value of consideration, only if such stamp duty value exceeds by 5% or .more of the actual consideration. [Sec. 50C]
#13) Capital gains exemption for investment in specified, bonds to be allowed only in case of transfer of land or building or both. [Sec. 54EC]
#14) Capital Gains Bonds to have a lock-in period of 5 years. [Sec. 54EC]
#15) Stamp duty value of an immovable property received without consideration or for inadequate consideration to be treated as income of recipient, only if such value exceeds the amount of consideration by an amount being higher of Rs. 50,000 or.5% of such consideration. [Sec. 56(x)]
#16) Filing of return by due date u/s 139(1) to be mandatory for claiming deductions u/s 80HH to 80-RRB. [Sec. 80AC]
#17) Deduction for medical insurance premium and medical treatment of senior citizens, enhanced to Rs. 50,000. [Sec. 80D]
#18) Medical insurance premium paid in lump sum for more than one year, to be deducted in equal proportion in the relevant years. [Sec. 80D]
#19) Limit on deduction for medical treatment expenditure, in case of senior citizens, enhanced to Rs. 1,00,000. [Sec. 80DDB]
#20) 100% deduction for Producer Companies for income from eligible business[Sec. 80PA]
#21) Senior citizens to be allowed deduction up to Rs. 50,000 in respect of income by of way interest on deposits (including fixed, recurring and savings) in a bank or post office. [Sec. 80TTB]
#22) Long-term capital gains arising from transfer of equity shares or units of equity-oriented mutual funds/business trust, computed without allowing benefit of indexation and conversion of currency and exceeding Rs. 1,00,000 to be taxed @ 10%, provided STT has been paid at the time of acquisition and transfer of shares and at the time of transfer of units. Such capital gains up to Rs. 1,00,000 shall be exempt. Further, no tax shall be payable on gains arisen up to 31.1.2018 and fair market value as on 31.1.2018 shall be treated as cost of acquisition. [Sec. 48, 55 and 112A]
#23) Any resident person (other than individual) entering into a financial transaction aggregating to Rs. 2,50,000 or more in a financial year, and its managing director, director, partner, trustee, karta, chief executive officer, principal officer etc. shall be mandatory liable to obtain PAN. [Sec. 139A]
#24) TDS to be deducted on interest from 7.75% Savings (Taxable) Bonds, 2018, if exceeds Rs. 10,000 in a financial year. [Sec. 193]
#25) NO TDS on interest from deposits with a bank, in case of a senior citizen, if it does not exceed Rs. 50,000 in a financial year. [Sec. 194A]