Budget 2018: What Standard deduction and tax on dividend mean for you

In this Budget, a 10 per cent tax has been imposed on the dividend paid by equity mutual funds. Earlier, the dividend was tax-free in the hands of the individual investor.

Budget 2018 had mixed tidings for salaried employees and investors. While the finance minister introduced a standard deduction for all salaried employees, at the same time he raised the cess levied on income tax. For investors, there was also the negative of tax on dividend income from equity mutual funds (beside long-term capital gains or LTCG tax).  

A standard deduction of Rs 40,000 has been introduced for all salaried employees. Suresh Surana, founder, RSM India, explains this is not quite a gift from the finance minister. “Earlier, there was medical reimbursement of Rs 15,000 and a transport allowance