Income Tax Key Changes 2018 19

Income tax slab for individual and huf less than 60 years old surcharge.

Income tax key changes 2018 19. Reintroduction of long term capital gains tax on stocks and equity based mutual funds. The width of tax bands is widened from 45 000 to 50 000 and the number of tax bands is increased from 4 to 5 with marginal tax rates of 2 6 10 14 and 17 commencing from the year of assessment 2018 19. This 10 tax is applicable on the sale of equities after one year of their purchase. Changes in income tax slabs for the fy 2018 19 1.

However from fy 2018 19 the existing cess of 3 education secondary and higher education cess has been increased to 4 and named as health and education cess. 10 of income tax where total income exceeds rs 50 lakh up to rs 1 crore. Here are 5 key income tax changes that have been implemented since april 1 st 2018. Some of the changes in the forms have been done in keeping with the changes in income tax laws made in budget 2018 for fy 2018 19 and onwards.

Increase in rate of tax surcharges on income from unexplained sources from 30 to 60 25 penalty on income assesse now permitted to disclose such income on his own in itr. 10 lakhs will attract a 10 ltcg tax in the fy 2018 19. State and local tax deductions. These key tax changes could affect your bill.

Savers who contribute to individual retirement accounts will have higher income ranges following cost of living adjustments. The income tax return itr forms for fy 2018 19 notified by the government are different from those used to file the previous year s returns. However two key changes are most likely to affect your clients who have claimed itemized deductions in prior years. There has been no change in the income tax slabs in budget 2018.

Penalty in case of income from unexplained source 10 of tax. Unless noted otherwise the changes made by the tax reform bill go into effect for the 2018 tax year which means you ll first notice them on your tax return that you file in 2019. For 2018 the new tax law places a 10 000 limit on itemized deductions for state and local income and property.