Income Tax Rules That May Increase Your Tax Saving

The union budget 2018 had brought dramatic changes in the income tax laws that can help you to save more as compared to the previous years. Here, in this article, we have illustrated new income tax rules that can help you to save the tax for this financial year.

Health Insurance Deduction

One of the main highlights of Budget 2018 election was elevating the health insurance premium paid for the senior citizens which could be claimed as a deduction. Earlier, the deduction was limited to Rs 30,000 but now it has been increased to Rs 50,000. This will not only benefit the senior citizens who themselves pay the health insurance premium but individuals who pay insurance premium on behalf of their parents 60 years and above. If both the parents are above 60 years, then the permissible deduction is Rs 1 lakh which was Rs. 60,000 earlier.

Exemption of interest income

There is one more reason to cheer for the senior citizens, with the arrival of Budget 2018, the interest exemption limit has been hiked from Rs 10,000 to Rs 50,000 for the account held with a post or a bank.

Reintroduction of standard deduction

According to the experts, the finance ministry has planned to re-introduce standard deduction to the salaried class in the budget. This will lead to lesser income tax burden with lesser compliance and will bring them closer with non-salaried employees i.e. self-employed.