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

Gratuity:
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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