Changes in IT Return for AY 2019-20

 Changes in Income Tax Rules:

1.         No Change in Income Tax Slabs

2.       1% additional health cess taking total cess on income tax to 4% (2% education cess& 1% higher education cess continues). This will marginally increase income tax for every tax payer.

3.     Standard Deduction of Rs 40,000 to Salaried and Pensioners. However transport allowance (Rs 19,200 per annum) and medical reimbursement of Rs 15,000 has been abolished. So the net benefit for salaried would be Rs 5,800 only bringing marginal relief. However Pensioners would gain as they did not have transport & medical allowance.

4.    10% Long Term Capital Gains Tax on Equity and Equity based Mutual Funds introduced.

5.        Medical Insurance premium exemption for senior citizen increased from Rs 30,000 to Rs 50,000 u/s 80D

6.       Medical expenses will see increased tax benefits for senior citizens. 100,000 on critical illness u/s 80DDB

7.       Rs 50,000 exemption for interest income from Bank or Post Office Fixed/Recurring Deposits for Senior Citizens

Deduction u/s 80C to 80U:

Assessment year 2019-20 and subsequent assessment years.

Particulars	Old Provision of section 80TTA	New Provision of Section 80TTB
Deduction  for senior citizens in respect of Interest income	Deduction Allowed upto Rs.10000/- for Saving Account Interest u/s 80TTA	Deduction allowed upto Rs.50,000/- for FDR and Saving Interest u/s 80TTB

Section 194A also been amended by Budget 2018 so as to raise the threshold for deduction of tax at source on interest income for senior citizens from Rs 10,000/- to Rs 50,000/-.

This amendment takes effect, from 1st April, 2018.

Section 80D: Income Tax Deduction for F.Y 2018-19/A.Y. 2019-20

Insured	Exemption List
Self & family	25,000
Self & family + Parents	25,000 + 25,000 = 50,000
Self & family + Parents (senior citizens)	25,000 + 50,000 = 75,000
Self (senior citizen) & family + Parents (senior citizens)	50,000 + 50,000 = 1,00,000