25/12/2018

Standard deduction to salaried employees and withdrawal of exemption pertaining to medical reimbursement {Secs}. 16 and 17] ( Author - Admin )

The following amendments have been made to the scheme of sections 16 and 17 


Standard deduction  Clause (ia) has been inserted in section 16. This clause provides standard deduction from the assessment year 2019-20 in computing income chargeable under the head “Salaries”. The amount of standard deduction will be Rs. 40,000 or the amount of salary, whichever is lower. 


-Withdrmml of exemption pertaining to reimbursement of medical expenditure, Section 17(2) has been amended to withdraw exemption pertaining to reimbursement of medical expenditure of Rs. 15,000, This modification is also applicable from the assessment year 2019-20. However, other existing exemptions Which are available for different medical facilities (eg, medical facility to employees in Government hospitals and approved hospitals, payment of medi-claim insurance premium by employer) will continue. 



-Further. the Finance Minister in his budget speech has announced to withdraw the present exemption of Rs. 1,600 per month of transport allowance (however, transport allowance exemption at enhanced rate of Rs. 3,200 per month shall continue to be available to differently abled persons). 


About the author

Admin
Print