No relief to salaried class in Budget-2018.Therefore the All India Pensioners Association of Central Board of Indirect Tax and Customs , called the Union Budget 'disappointing', saying that they are already holding a nationwide demonstration on today.

No relief to salaried class in Budget-2018.Therefore the All India Pensioners Association of Central Board of Indirect Tax and Customs , called the Union Budget 'disappointing', saying that they are already holding a nationwide demonstration on today.

Finance Minister Arun Jaitley on Thursday provided no relief to salaried class. Benefits under the proposed Rs 40,000 standard deduction will be neutralised to some  extent by inclusion of transport and medical allowances and 1 per cent hike in health and education cess.

Already the individual tax payer was getting benefit of Rs 19,200 under transport allowance and Rs 15,000  under the medical allowance. Both these components add to the tax benefit of Rs 34,200  per annum. So, the effective tax gain is to the tune of Rs 5,800 per annum with the introduction of standard deduction. The withdrawal of annual tax free transport allowance and medical reimbursements has squared off the benefit on account of standard deduction. 

“In order to provide relief to salaried taxpayers, I propose to allow a standard deduction of Rs 40,000 in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses,” Jaitley said in his Budget speech.

This decision to allow standard deduction shall significantly benefit the pensioners also, who normally do not enjoy any allowance on account of transport and medical
expenses. This standard deduction has been re introduced as per the demand raised by All India Pensioners Association of Central Board of Indirect Tax and Customs.

Lolipop to Central Government Employees including pensioners by FM .

  There is no proposal for  modifications of pay rules under the 7th Pay Commission recommendations to enhance the pay per month for lower-level central government employees upto the pay matrix level 5.

 The All India Pensioners Association of Central Board of Indirect Tax and Customs further said that the Budget is not good for the salaried people including pensioners. Therefore the All India Pensioners Association of Central Board of Indirect Tax and Customs ,  called the Union Budget 'disappointing', saying that they are already  holding a nationwide demonstration on  today. 


Budget-2018

1) No changes in the structure of tax slabs for salaried tax payers.

2) There is a negligible  standard deduction of Rs 40,000 is proposed for salaried employees. This move was brought about keeping in mind that salaried individuals have been paying more tax than individual business owners. This standard deduction in lieu of the present exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses. However, one needs to keep in mind that, the transport allowance at enhanced rate shall continue to for differently-abled. And, other medical reimbursement benefits in case of hospitalisation etc, which are currently applicable to employees shall also continue. This standard deduction move will reduce a very negligible  tax liability for middle class employees as well as pensioners.( The All India Pensioners Association of CBEC demanded for standard deduction of Rs.2 lakh)

3) For senior citizens, there will be very negligible raise in exemption in  interest income on deposits with banks and post offices to be increased from Rs 10,000 to Rs 50,000. And the best part is that TDS will not be deducted for the same. This move is applicable to all fixed deposits schemes and recurring deposit schemes. As far as health insurance premiums go, deduction for the same has been raised Rs 30,000 to Rs 50,000 under section 80D. For critical illness, the deduction for medical expenditure in respect of certain critical illness from, Rs 60,000 in case of senior citizens and from Rs 80,000 in case of very senior citizens, to Rs 1 lakh in respect of all senior citizens, under section 80DDB.

4) Finance Minister rationalised Long Term Capital Gains (LTCG) tax. FM for equities proposed to tax long term capital gains exceeding Rs 1 lakh at the rate of 10 percent without allowing the benefit of any indexation. However, all gains up to 31st January, 2018 will be grandfathered. A tax on distributed income by equity oriented mutual fund at the rate of 10 percent was introduced as well.

5) Now, there is an increase in the cess of one percent. The existing three percent education cess will be replaced by a four percent as 'health and education cess' to be levied on the tax payable.

6) There is an increase customs duty on certain items. An increase customs duty of imported mobile phones from 15 percent to 20 percent, on some of their parts and accessories to 15 percent and on certain parts of TVs to 15 percent. 

7. Due to  enhancement  cess many employees will pay more income tax. 

8.  There is no proposal for  modifications of pay rules under the 7th Pay Commission recommendations to enhance the pay per month for lower-level central government employees upto the pay matrix level 5.