Another major tax change that was announced in the Budget this year is the introduction of standard deduction in lieu of medical reimbursement and transport allowance. The latter two components can be easily seen in our salary slips in the previous FYs.

However, starting from FY 2018-19, they will no longer be mentioned in the salary slips because of change in tax laws. The standard deduction of Rs 40,000 introduced in lieu of these two items can be claimed by taxpayers from their salary income at the time of filing ITR.