New Delhi: Unveiling the Union Budget 2018, Finance Minister Arun Jaitley on Thursday announced exemption of interest income on deposits with banks and post offices. Interest income will be increased from Rs 10,000 to Rs 50,000 for senior citizens.
“TDS will also be not required to be deducted under section 194A. The benefit will be available for interest from all fixed deposit schemes and recurring deposit schemes,” Jaitley said.
The finance minister also hiked in deduction limit for health insurance premium and/ or medical expenditure from Rs 30,000 to Rs 50,000 under section 80D.
Additionally an increase in deduction limit for medical expenditure for certain critical illness from Rs 60,000 (in case of senior citizens) and from Rs 80,000 (in case of very senior citizens) to Rs 1 lakh for all senior citizens, under section 80DDB has also been announced.
Jaitley has proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March 2020. The Current investment limit will be increased to Rs 15 lakh from the existing limit of Rs 7.5 lakh per senior citizen, Jaitley said.
The finance minister announced no change in personal income tax rates for salaried class. However, he has announced standard deduction of Rs 40,000 in lieu of transport and medical reimbursements for salaried employees.