Transport allowance is withdrawn by CBDT, i.e. provisions relating to exemption of ‘Transport Allowance’ of Rs. 1,600 pm for salaried individuals/ employees to meet their commuting costs between residence and office, stands withdrawn from 1 April 2019 (FY 2018-19/ AY 2019-2020). It may be noted that reintroduction of Standard Deduction by the Finance Act, 2018 has resulted in getting transport allowance withdrawn.
Showing posts with label Arrears Relief Calculator for F.Y.2018-19. Show all posts
Showing posts with label Arrears Relief Calculator for F.Y.2018-19. Show all posts
Thursday, 13 December 2018
Sunday, 16 September 2018
Budget 2018 though did not change the broad tax slabs but made some changes in the tax exemptions. One of them was the reintroduction of Standard Deduction for salaried and pensioners. From FY 2018-19 (AY 2019-20) all salaried and pensioners would be eligible for the standard deduction of Rs 40,000. However, as they say, the devil lies in details. With the introduction of the standard deduction, the finance minister has removed two popular tax deductions which were available for salaried: Transport Allowance of Rs 19,200 and Medical Reimbursement of Rs 15,000. So, the net impact of the standard deduction for salaried would only be Rs 5,800 (40,000 – 19,200 – 15,000). However, as pensioners did not have these allowances standard deduction for them is really good news.
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