Save Tax & Grow Wealth with Section80C

Save Tax upto Rs 46,500 Save Tax & Grow Wealth

Start Investing and Get 500 Cashback

Grow Wealth With Expert

Get 500 Cashback on First Investment

  Get Free Expert Financial Advisor Help
  Evaluate your Risk Profile
  Start Investing in 5 mins

Save Tax With Expert

Get 500 Cashback on First Investment

  Get Free Expert Financial Advisor Help
  Evaluate your Risk Profile
  Start Investing in 5 mins

Budget 2018 - New Income Tax Slab Rates and Tax Deductions for New Financial Year

Income Tax Exemptions for FY 2018-2019 AND AY 2019-2020

Budget 2018 - Changes made to Tax Exemptions


Standard deduction of Rs 40,000 reintroduced

Introduction of Standard deduction of Rs 40,000 for the salaried class (replacing the transport allowance of Rs 19,200 and the miscellaneous medical Reimbursement of Rs 15,000). Prima facie income exempted from tax after setting off the gain and loss is Rs 5,800 only.

80D benefit has been enhanced to Rs 50,000 for senior citizens

Section 80D deduction limit for health insurance premium and/ or medical expenditure increased from Rs 30,000/- to Rs 50,000/- for senior citizens

80DDB benefit has been enhanced to Rs 1,00,000 for all senior citizens

In case of senior citizens with critical illnesses the deduction will be Rs 1 lakh. Current limit was Rs. 60,000 where expenditure is incurred for a senior citizen (60 years to 80 year age) and Rs. 80,000 in case of very senior citizen (above 80 years)

80TTA

For Senior citizens, FD and post office interest will be exempt till Rs 50,000. Also No TDS on interest from FD upto Rs 50,000.




Current Income Tax Exemptions for FY 2017-2018 AND AY 2018-2019

Section Deduction on FY 2017-18
Section 80C Investment options under Section 80C
  • Investment in PPF
  • Employee's share of PF contribution
  • National Savings Certificates (NSC)
  • Life Insurance Premium payment
  • Children's Tuition Fee
  • Principal Repayment of home loan
  • Investment in Sukanya Samridhi Account
  • ULIPS
  • ELSS
  • Sum paid to purchase deferred annuity
  • Five year Bank or Post office Tax saving Deposits
  • Senior Citizens savings scheme
  • Subscription to Home Loan Account Scheme of the National Housing Bank
  • Subscription to notified NABARD rural bonds
  • Stamp duty charges for purchase of a new house
Rs. 1,50,000
80CC Contributions to certain Pension Funds Part of 80C - Rs. 1,50,000
80CCD(1) Employee's Contribution to NPS (maximum up to Rs 1,50,000) Part of 80C - Rs. 1,50,000
80CCD(2) Employer's Contribution to NPS Maximum up to 10% of salary
80CCD(1B) Self Additional contribution to NPS Rs. 50,000
80TTA Interest Income from Savings account Maximum up to 10,000
80GG Deduction for House Rent when HRA is not received Least of :

  • Rent paid minus 10% of total income.
  • Rs 5000 per month.
  • 25% of total income.
80E Interest on Education Loan for Higher Studies Maximum of 8 years
Section 24 Interest paid on Home Loan Maximum Deduction Rs 2,00,000
80EE Interest on home loan for first time home owners Additional Rs 50,000
80D Medical Insurance - Self, spouse, children
Medical Insurance - Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old
Rs. 25,000

Rs. 30,000

80DD Medical Expenditure for a Handicapped Relative Maximum Deduction Rs. 1,25,000
80DDB Medical Treatment of Specified Diseases and Ailments Maximum Rs 80,000 or the amount actually paid
80U Deductions for Person suffering from Physical Disability Maximum Deduction Rs. 1,25,000
80GGC Deductions on Contribution to Political Parties Amount contributed (not allowed if paid in cash)
80RRB Deductions on Income by way of Royalty of a Patent Lower of Rs 3,00,000 or income received



Income Tax Slab Rates for FY 2018-2019 AND AY 2019-2020

Budget 2018 - Updates to Individual Income Tax



No Change in Individual Income Tax Slab

3% Education Cess to be replaced with Health and Education Cess @ 4% for all taxpayers



The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age.

Income Slab Tax Rate
Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 - Rs 5,00,000 5%
Income from Rs 5,00,000 - 10,00,000 20%
Income above Rs 10,00,000 30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh but doesn't exceed Rs. 1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs. 1 crore.
Health and Education Cess: 4% on total of income tax + surcharge.


Income Slab Tax Rate
Income up to Rs 3,00,000 No tax
Income from Rs 3,00,000 - Rs 5,00,000 5%
Income from Rs 5,00,000 - 10,00,000 20%
Income above Rs 10,00,000 30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh but doesn't exceed Rs. 1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs. 1 crore.
Health and Education Cess: 4% on total of income tax + surcharge.


Income Slab Tax Rate
Income up to Rs 5,00,000 No tax
Income from Rs 5,00,000 - 10,00,000 20%
Income above Rs 10,00,000 30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh but doesn't exceed Rs. 1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs. 1 crore.
Health and Education Cess: 4% on total of income tax + surcharge.


Income Slab Tax Rate
Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 - Rs 5,00,000 5%
Income from Rs 5,00,000 - 10,00,000 20%
Income above Rs 10,00,000 30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh but doesn't exceed Rs. 1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs. 1 crore.
Health and Education Cess: 4% on total of income tax + surcharge.