“In Union Budget 2018-19, markets reacted adversely to the introduction of Long Term Capital Gain tax at 10% on gains exceeding Rs100,000, but eased on understanding the grandfathering of gains before January 31, 2018. The FM enthused the salaried class by reintroducing standard deduction of up to Rs40,000, but soon gave it away by withdrawing current exemptions on transport allowance (Rs19,200 per annum) and medical reimbursement (Rs15,000 per annum), leaving only a marginal benefit.
With the objective of providing dignity and respect to senior citizens, the FM has proposed several amendments; increasing deduction on interest on deposits from Rs10,000 to Rs50,000, raising the limit of deduction for health insurance from Rs30,000 to 50,000, among others. Overall, together with the additional education cess of 1 per cent, there isn’t too much for the salaried class in this Budget.”
Akhil Chandna, Director, Grant Thornton India LLP