Standard deduction - a sum that the salaried can lop off from their taxable income - has returned after a gap of 12 years. Finance minister Arun Jaitley restored the tax break that was scrapped from the assessment year 2006-07 and set the limit at Rs 40,000.

But the tax relief has been somewhat blunted by the decision to scrap the transport allowance of Rs 1,600 per month (except in the case of differently abled persons), which works out to Rs 19,200 per annum.

Likewise, the benefit of the reimbursement of medical expenses - available up to Rs 15,000 a year - will no longer be exempt with effect from the assessment year 2019-20.

In one sense, the benefits available now aggregating to Rs 34,200 will be withdrawn. So, the net gain in terms of standard deduction is only Rs 5,800. That is just the sort of sleight of hand that the salaried class could have done without.

But the big blow is that the existing cesses amounting to 3 per cent (2 per cent on primary education and 1 per cent on secondary and higher education) have been replaced by a new 4 per cent Health and Education Cess. It makes the tax system more complicated.

Senior citizens, however, have received some relief in this budget.

Long-term capital gains: The finance minister has proposed to levy a tax of 10 per cent on long-term capital gains if the assessee has gains in excess of Rs 1 lakh.

Adjustment in assessment: The scope for adjustment of income under Section 143(1)(a) has been restricted. At present, the income tax officer can enhance income on the basis of information available in Form 26AS or Form 16 or Form 16A relating to TDS if the related amount has not been shown as income by the assessee.

Considering the inconvenience of people, the power to make additions on that basis has been abolished. It is a step in the right direction. Tax cases have clogged the judicial system and the taxman has a very poor success rate - an uncomfortable truth that was highlighted in Monday's Economic Survey.

Property value: At present, if any person buys or sells any immovable property, the consideration is deemed/ treated either on the basis of the sale consideration shown in the sale deed or the value determined for the purpose of stamp duty by the stamp duty authorities, whichever is higher.

Now, the finance minister has proposed that no addition will be made if the difference in value does not exceed 5 per cent.

All in all, the tax breaks in this budget are more illusory than real.