Budget 2018 proposes to provide a standard deduction of Rs 40,000 from salary income to employees but also proposes to take away existing annual transport allowance of Rs 19,200 and Rs 15,000 medical reimbursement. Prima facie income exempted from tax after setting off the gain and loss is Rs 5800 only. The tax saved for each employee on this income would depend on the tax slab that income falls into. The saving in tax would be Rs 290 for those currently paying 5% tax on this income; Rs 1160 for those paying 20% tax on this income; and Rs 1740 for those paying 30% tax on this income. However, these savings would be nullified in most cases, except in the case of income up to Rs 5 lakh, due to increase in the cess payable from current 3% to 4% on the rest of the income tax payable by the individual. As a consequence, individuals with income above Rs 5 lakh would end up shelling out more taxtaking into account the standard deduction, the removal of the allowances and the increase in cess. However, pensioners will benefit substantially as earlier they did not get any standard deduction or any of the other allowances given to salaried employees. They would save tax payable on this entire amount of deduction but of course have to pay the increased cess on the balance income. Currently, medical bills of up to Rs 15000 were reimbursable to employees tax free per financial year by employers. A tax-exempt transport allowance of Rs 19200 per financial year was also allowed to be paid t
if modi wins elections then jaitley will be FM again and the movie made on him will be made in 2 parts...first will be vasooli0 bhai0 2014-2019 The beginning and the second will be vasooli0 bhai0 2019-2024 the conclusion....
GovtMaadharChodhs not satisfied with 7th Pay Comn, want 20% more
Nowadays a peon or junior asst in gov gets Rs 35,000, a gov lecturer gets Rs 1.5lak, a teacher 50K. Modi gov claims they are collecting a lot of taxes nowadays thru GST, income tax, etc. What all these collections for? To pay salaries to GovtMaadharChodhs (GMCs) who are good-for-nothing fellows?
I appreciate, Modi's initiatives on several fronts, but he is unable check the salaries of GMCs.
GMCs are laggards who seldom work but work very hard when there is scope for corruption. They spend 80% time eating paan and spitting on walls, talking about SexPoliticsAndNonsense, etc. They play cards for 2 hrs when lunch time is 1 hr.
Only defense people should be paid high salaries, and salaries of all the GMCs should be reduced.
Govt is collecting taxes from the 97% hardworking people in the pvt sector, to pay exorbitantly high salaries to 3% GMCs.
In pvt companies, only top 3% could be corrupt, but 97% employees have to work hard. In govt companies 99% are corrupt and / or laggard fellows.
Govt should stop revising the salaries of the GMCs in future and divert that excess money for improving primary education, family planning incentives, and spreading English language among poor and farmers in villages who are often driven to commit suicide. Gov criminals eat up 10% GDP / yr and are burden on economy and they should be paid only market average salaries. Money thus saved should be diverted to develop the poor.
