Finance minister Arun Jaitley on Thursday provided little relief to salaried class as benefits under the proposed Rs40,000 standard deduction will be neutralised to a large extent by inclusion of transport and medical allowances and 1% hike in health and education cess.
Already the individual tax payer was getting benefit of Rs19,200 under transport allowance and Rs15,000 under the medical allowance. Both these components add to the tax benefit of Rs34,200 per annum. So, the effective tax gain is to the tune of Rs5,800 per annum with the introduction of standard deduction.
