Effect of Standard Deduction of Rs 40,000 on your Taxable Income

How 40,000 Standard Deduction affect your Taxable income ?

Standard Deduction 40,000

 Standard Deduction :It’s an amount that you can simply deduct from your taxable income without the need for any proof. Which means, when you’re filing your tax returns this year if your taxable income is, say, Rs 5.6 lakh, you can simply remove Rs 40,000 from it, and calculate from a starting point of Rs 5.2 lakh.https://www.thenewsminute.com/article/standard-deduction-rs-40000-income-what-means-and-how-it-will-affect-you-75724

Travel And Medical Allowances:  In the budget speech Finance Minister Arun Jaitely announced in Budget Speech 2018 the 40,000 standard deduction which you can deduct from your taxable income. But in lieu of this  You cannot claim travel and medical allowance. In the previous financial year (2017-18), the travel and medical allowance were at Rs 19,200 and Rs 15000 per year respectively.

Education and Swach  Bharat Cess :  Govt also increase the  Eductaion cess and Swach bharat ess  from 3% to 4%

Now with the help of example we understand how this move will affect  your calculation of income 
tax.
 Salary  :                               
1) up to 2.5 lakh            2)  2.5-5 lakh         3) 5-10 lakh     4) 15Lakh
Present Tax :    Nil               12875                115875                270735
Later Tax  :      Nil               12698                 115793               271190
Gain/loss :         Nil                177                      82                    -815 

To know more about lTCG in Hindi language click on the following link:
https://www.youtube.com/watch?v=RN2L2bdmneA