Employees of formal sectors will have more money to invest: Government has proposed to fund 12% of wages for new employees of Employees' Provident Fund in all sectors. In addition, take home salary of new women employees is likely to go up in the formal sector. Employers can deduct 8% PF to be cut in first three years.

In addition, salaried individuals can claim standard deduction of up to Rs.40,000 in lieu of transport and medical reimbursement. It has increased from Rs.34,200 (Rs.19,200 transport allowance and Rs.15,000 medical reimbursement).