1. No, it cannot be claimed. The Standard deduction of Rs.40,000 (FY 2018-19) was substituted in place of conveyance allowance and medical reimbursement expenses to a salaried employee.
2. An assessee who is handicapped can only claim Standard deduction and conveyance allowance.
Please correct me if the above solution has an alternative view.
In a recent clarification issued by the income tax department, if a taxpayer has received a pension from the former employer, it is taxable under the head ‘Salaries’. Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less.