Medical and Transportation Allowances Subsumed into Standard Deduction

Standard Deduction: Budget 2018 has not cheered the Salaried Class at all, neither the tax slab is changed nor the deduction limit under section 80C is hiked. The tax rebate of Rs.5,000 has been reduced to Rs.2,500 and that too up to the taxable income of Rs.3,00,000 which was earlier up to Rs.5,00,000.

The only changed proposed for the salaried class is the reintroduction of Standard Deduction of Rs.40,000. This standard deduction was the part of income tax act but was done away with in Union Budget 2005-06 by P. Chidambaram by introducing medical and transportation allowances, but now from Assessment Year 2019-20, both medical allowances and transportation allowance are subsumed into the standard deduction of Rs.40,000.

On August 07, 2018 by www.taxexcel.net

Share It

No Comments

Read More

As per section 89(1) of the Income Tax Act, 1961 relief for income tax has been provided when in a financial year an employee receives the salary in arrears or advance. As per Rule 21AA of the Income Tax Rules, 1962, Form 10-E has been prescribed for claiming the relief.

On July 23, 2018 by www.taxexcel.net

Share It

No Comments

Read More

If you are a salaried people, you have many ways to save tax. The allowances are one of the best ways to reduce the tax outgo. However, the tax saving from the allowances depends upon your employer. Because the only employer can decide to give you a particular allowance. If there is an allowance in your salary structure only then you can avail tax benefit.

On April 03, 2018 by www.taxexcel.net

Share It

No Comments

Read More