Budget 2018: Instead of Increasing Tax Exempted Income to 3 lacs, Govt. Implied Standard Deduction To Reward Honest Taxpayers
Tax-free income for salaried class and pensioners has been raised to Rs 2.9 lakh by way of a Rs 40,000 standard deduction and not by hiking exemption limit as the government wanted the benefit to accrue to honest tax payers, Finance Secretary Hasmukh Adhia said today.
The standard deduction, which replaces tax-free transport allowance of Rs 1,600 per month (Rs 19,200 a year) and medical expense reimbursement of Rs 15,000 per annum, will accrue automatically to salaried class and pensioners without the requirement of furnishing proof like medical bills that is in vogue now.
The provision, which forms part of the Budget for 2018- 19, will apply from April 1 after Parliament approval.
Finance Minister Arun Jaitley chose the standard deduction route rather than raising tax exemption l...
