New Delhi, Feb 1: Budget 2018 brought relief to women employees as Finance Minister Arun Jaitley announced that only 8 percent employees provident fund (EPF) will be deducted for the first three years of their employment. He further announced that the government will pay 12 percent EPF contribution for new workers for three years. The contribution of 8.33 percent will be deducted from new employees for three years. The government, however, disappointed income tax payers. Also Read - Finance Act 2018 Clarifies Applicability of Standard Deduction For Pensioners
“Facility of fixed term employment to be extended. 12% government contribution to EPF for new employees. Women’s contribution to EPF to be reduced to 8% for first three years,” Jaitley said. Also Read - List of Things That Will be More Expensive From April 1, 2018
“Contribution of 8.33% to EPF for new employees by the govt for three years and 12% govt contribution to EPF in sectors employing large number of people,” he added. Also Read - Armed Forces Facing Shortage of 52,000 Soldiers, Army's 21,000 Posts Vacant: Govt
Finance Minister Arun Jaitley didn’t provide any tax relief in income tax slabs for individual taxpayers. This means that the income tax exemption limit will remain Rs 2 lakh 50 thousand. It was anticipated that the government might raise the income tax exemption limit to Rs 3 lakh per annum. It was also reported earlier that the government might increase the limit of tax break under Section 80C to Rs 2 lakh from Rs 1.5 lakh– the Finance Minister disappointed taxpayers in that regard as well.
Finance Minister Arun Jaitley, however, provided relief to salaries taxpayers by way of standard deduction of Rs 40,000 under transport and medical reimbursement. The government announced tax benefits to senior citizens. He announced that interest earned on bank deposits up to Rs 50,000 will be tax free.