In the Union Budget 2018-19, the Finance Minister has proposed to provide Rs 40000 Standard Deduction from salary income to all employees & pensioners. As per the Tax rules that are applicable for FY 2017-18 (AY 2018-19) ; A Salaried individual can claim annual Transport allowance (conveyance allowance) of up to Rs 19,200 (Rs 1,600 pm) and up to Rs 38,400 (Rs 3,200 pm) by differently-abled persons. The Salaried can also claim up to Rs 15,000 (Rs 1,250 pm) medical reimbursement. To claim this, you would have been submitting medical bills to your employer and getting the allowance benefit. These allowances are part of Section 10 of the Income Tax Act. You can find these allowances listed under Part-B of your Form-16, as shown in the below image. With effective from FY 2018-19, a standard deduction of Rs 40,000 in lieu of travel and medical allowances has been proposed fo...