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Budget 2018 : Income Tax Calculation after 40000 standard deduction

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Finance Minister Arun Jaitley did not change any slabs or rates of   personal  income tax in budget 2018 . Though, he announced a standard deduction of  Rs.  40000 in place of exemptions allowed for medical reimbursement i.e.  Rs.  15000 & transport allowance i.e.  Rs.  19200. He also announced  cess increased on income tax from 3 per cent to 4 per cent for taxpayers. We have provided few examples on how these tax changes will impact  your income tax going forward in 2018-19 (Assessment Year 2019-20), if you are a salaried employee. Example – 1 (In  Rs. )  Total savings: Rs. 244 For FY 2017-18 Taxable Income -  400000 Standard Deduction - NA Medical Reimbursement & Transport Allowance - 34200 Net Taxable Income - 365800 Income Tax - 5964 (with 3% cess) For FY 2018-19 Taxable Income -  400000 Standard Deduction - 40000 Medical Reimbursement & Transport Allowance - NA ...