Standard Deduction of Rs 40,000 to Salaried Employees August 1, 2018
Standard deduction to salaried employees and withdrawal of exemption pertaining to medical reimbursement [Sec16 and I7] The following amendments have been made to the scheme of sections 16 and 17 - A 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.
A Withdrawal 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 mcdi-claim insurance premium by employer)wi11 continue.
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