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FB - SALARY - IS THERE MISTAKE IN CLAUSES vis a vis Budget Speech and memorandum?

FB - SALARY - IS THERE MISTAKE IN CLAUSES vis a vis Budget Speech and memorandum? - Budget - By: - CA DEV KUMAR KOTHARI - Dated:- 5-2-2018 - Links and references: Present sections 16 and 17 of the Income-tax act,1961 Clauses 7 and 8 of FB Budget speech paragraph -151 Memorandum about clauses 7 and 8 of FB Earlier article dt. 03.0.2018: Amendment relating to salary- standard deduction (40K) allowed and certain medical reimbursement made taxable perquisite Earlier Article dt.101017: Budget 2018 RE .....

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posals it is stated as follows: ….. . Consequently the present exemption in respect of Transport Allowance (except in case of differently abled persons) and reimbursement of medical expenses is proposed to be withdrawn. In the budget speech also the FM in paragraph has inter alia stated as follows; ….. 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. Therefo .....

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or amenity as may be prescribed:] [Provided that nothing in this clause shall apply to,- (v) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family [other than the treat­ment referred to in clauses (i) and (ii)]; so, however, that such sum does not exceed fifteen thousand rupees in the previous year; Unquote: Therefore, we find that the clause (v) to be omitted is only about medical re-imb .....

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(i) [as omitted by section 6 of the Finance Act, 2005 (18 of 2005)], the following clause shall be inserted with effect from the 1st day of April, 2019, namely:- (ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less; . Explanatory memorandum: Clause 7 of the Bill seeks to amend section 16 of the Income-tax Act, relating to deductions from salaries. The existing provisions of the said section, inter alia, provide that the income chargeable under the head Salarie .....

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of the Income-tax Act, in clause (2), in the proviso occurring after sub-clause (viii), clause (v) shall be omitted with effect from the 1st day of April, 2019. Clause 8 of the Bill seeks to amend section 17 of the Income-tax Act relating to Salary , perquisite and profits in lieu of salary defined. Clause (v) of the proviso occurring after sub-clause (viii) of clause (2) of the said section provides that any sum paid by the employer in respect of any expenditure actually incurred by the employe .....

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r certain deduction in computing income chargeable under the head Salaries . it is proposed to allow a standard deduction upto ₹ 40,000/- or the amount of salary received, whichever is less. Consequently the present exemption in respect of Transport Allowance (except in case of differently abled persons) and reimbursement of medical expenses is proposed to be withdrawn. These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 20 .....

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