Relief to Salaried employees:
At present an employee is entitled for exemption of Rs. 19,200 (Rs. 38,400 for physically handicapped or blind or deaf and dump employees) towards transport allowance and exemption of Rs. 15,000 in respect of reimbursement of medical expenses. No Standard deduction is allowed.
Proposed amendment: A standard deduction of maximum of Rs. 40,000 is proposed to be allowed to salaried
employees in lieu of present exemption in respect of transport allowance and reimbursement of medical expenses.The net benefit is only Rs. 5,800 which would be further reduced due to increase in cess by 1%. However, benefit of enhanced transport allowance to differently able persons shall be allowed.