What are the Benefits to Salaried Individuals in the General Budget 2018? | Labour Law News

What are the Benefits to Salaried Individuals in the General Budget 2018?

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Standard deduction of INR 40,000 re-introduced

Standard deduction , Standard deduction to Salaried Individuals, General Budget 2018,Standard deduction of INR 40,000

In the Union Budget 2018 the following benefits are given to the Salaried Individuals and details as follows.

Standard deduction of INR 40,000 re-introduced by withdrawing medical allowance and conveyance allowance.

Rs.30, 000/- relief was given to Salaried individuals till FY 2004-2005 for Standard deduction and it was abolished in the 2005 budget. Now the Finance Minister has Reintroduced Standard Deduction at Rs.40,000/- per year for Salaried individuals.

However the benefit of Transport allowance of Rs.19,200 and Medical Reimbursement of Rs.15,000/- under section 17(2) are being withdrawn. Thus net benefit to salaries class only Rs.5800/-

Apart from the above one more change has been made in the tax calculation i.e. the Education cess is revised from 3% to 4% and tax payers have to pay 1% extra education cess.

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