Deduction on salary

Deduction on salary
The standard deduction was discontinued in 2006-07. Salaried tax-payers are expecting it to be reintroduced for at least Rs 1 lakh.

Transport allowance:
Raise the transport allowance to Rs 3,000 per month from the existing Rs 1,600

Leave encashment exemption:
The exemption at the time of retirement under Section 10(10AA) of the Income Tax Act must be raised to Rs 10 lakh from the existing Rs 3 lakh

Medical reimbursement:
Raise the medical reimbursement to Rs 50,000 per annum from the existing Rs 15,000

Children’s education and hostel allowances:
The exemption limits must be raised to Rs 3,000 per annum for education allowance and Rs 5,000 per annum for hostel allowance per child

The workers in the formal sector should be entitled to tax-free Rs 20 lakh gratuity under the Payment of Gratuity (Amendment) Bill, 2017

Leave Travel Allowance:
The limit of two instances in a block of four calendar years should be removed and foreign travel should also be included under Section 10(5) of Income Tax Act

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