The new measure will benefit all salaried employees and pensioners without the hassle of filing supporting documents or bills.
Till now, taxpayers had to furnish medical bills and an undertaking for conveyance expenses to get the benefit of Rs 19,200 under transport allowance and Rs 15,000 under the medical allowance.
Salaried taxpayers and pensioners need not have to furnish any bills or documents to claim the standard deduction of Rs 40,000 announced in the budget 2018-19 Financial Year.
“The budget, this time, has given a large benefit of flat Rs 40,000 as a standard deduction to the salaried class of taxpayers and pensioners.
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“Earlier, some people were getting conveyance allowance and some medical allowance on the basis of production of bills, but now we have removed all individual allowances on a production of certain bills among others. It is flat Rs 40,000 to every salary earner. You can straightaway claim it,” Chandra said.
The Central Board of Direct Taxes (CBDT) is the policy-making body of the Income Tax department.
