Follow The Hindu's comprehensive coverage of Budget 2018 here“In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of ₹ 40,000 in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses,” Mr Jaitley said in his Budget speech. TDS (tax deduction at source) will not be required to be deducted on such income. “This benefit shall be available also for interest from all fixed deposits schemes and recurring deposit schemes,” Mr Jaitley said. The Budget has also raised the limit of deduction for health insurance premium and medical expenditure from ₹ 30,000 to ₹ 50,000, under section 80D. The Budget also raised the limit of deduction for medical expenditure in respect of certain critical illness from ₹ 60,000 in case of senior citizens and from ₹ 80,000 in case of very senior citizens to ₹1 lakh in respect of all senior citizens.

Source: The Hindu February 01, 2018 16:18 UTC