Giving in to the popular demand, Finance minister Arun Jaitley reintroduced standard deduction for salaried individuals after a gap of 13 years in the budget for 2018-19. In his speech, Jaitley proposed to offer a standard deduction of Rs 40,000 to salaried individuals.
In simple terms, it refers to a deduction allowed in income tax, irrespective of expenses incurred or investment made by assesses on transport and medical. There is no need for a taxpayer to keep proof of expenses such as bills for medical.
The move will reduce the income tax liability of salaried class besides reducing paperwork.
But
