No bills needed: Budget 2018 brings back standard deduction after 13 yrs

Giving in to the popular demand, Finance minister Arun Jaitley reintroduced standard deduction for salaried individuals after a gap of 13 years in the budget for 2018-19. In his speech, Jaitley proposed to offer a standard deduction of Rs 40,000 to salaried individuals.

In simple terms, it refers to a deduction allowed in income tax, irrespective of expenses incurred or investment made by assesses on transport and medical. There is no need for a taxpayer to keep proof of expenses such as bills for medical.

The move will reduce the income tax liability of salaried class besides reducing paperwork.

But