In the union budget 2018 presented by the Union Finance and Corporate Affairs Minister Arun Jaitley, yesterday proposed to allow a standard deduction of Rs. 40,000 in lieu of the present exemption. In respect of transport allowance and reimbursement of miscellaneous medical expenses for salaried taxpayers and pensioners the Central Board of Direct Taxes (CBDT) Chief Sushil Chandra clarified that the salaried taxpayers and pensioners need not have to furnish any bills or documents to claim the said standard deduction of Rs. 40000.
Mr. Sushil Chandara also specified in his speech that the new measure will benefit all salaried employees, without the hassle of filing supporting documents or bills and it will be a grant relief to them.
While Presenting the General Budget 2018-19 in the Parliament yesterday, the Finance Minister said, “Standard deduction shall significantly benefit the pensioners also, who normally do not enjoy any allowance on account of transport and medical expenses”.
The Finance Minister further said, “Apart from reducing paperwork and compliance, this will help middle-class employees even more in terms of reduction in their tax liability.”
the CBDT Chief also added that the fifth budget presented by the Finance Minister was really a revolutionary one and it will result in a big change in India’s economic growth.