Finance Minister Arun Jaitley has concluded Budget 2018 and as expected, the budget did not include any changes in the income tax slabs. However, the Finance Minister in his last full budget before 2019 general elections proposed to reintroduce a standard deduction of Rs 40,000 for salaried taxpayers in lieu of present exemption of transport allowance and reimbursement of miscellaneous medical expenses that will involve a revenue sacrifice of Rs 8,000 crore to benefit 2.5 crore people.
For all those who would be thinking now about how they will be able to claim this amount must get aware of the fact that they wouldn’t have to place any file, documents or even bills to claim Rs 40,000 standard I-T deduction on travel and medical expenses. Clearing the air on this matter, CBDT chief Sushil Chandra while informing the media on Thursday said that there wouldn’t be a need for any sort of documents, bills to Rs 40,000 standard deduction.
Finance Minister while presenting Budget 2018 on Thursday said, “In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of ₹40,000/- in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses.”
While the Union Budget 2018 has been announced, many business pundits, political analysts, and industry experts are still busy analysing how the new budget will further help the nation to progress on the path of development. Presenting the budget, FM Arun Jaitley announced world largest government-funded National Health Scheme which will provide a cover of Rs 5 lakh per family. The scheme will benefit around 50 crore citizens of the nation or approximately around 10 crore families.