10 Income Tax Rules That Will Change From April 1
) Rs. 40,000 standard deduction introduced: This additional deduction has been proposed in place of existing deductions of Rs. 19,200 for transport allowance and Rs. 15,000 for medical reimbursement. This will benefit 2.5 crore salaried employees. Pensioners, who normally do not enjoy any allowance for transport and medical expenses, will also benefit from it. After the introduction of standard deduction, the salaried class will enjoy a flat deduction of Rs.40,000 from their taxable income. Standard deduction was earlier available for salaried individuals previously, till it was abolished with effect from assessment year 2006-07. The benefits arising from standard deduction depends on the tax bracket a salaried individual falls in.