Standard Deduction of ₹ 50000 & other Deductions from Salary
Standard deduction is increased to ₹ 50,000 from financial year 2019-20 ie for the assessment year starting on 1st April 2020. While
comparing the tax liability under old tax regime and under new tax
regime, take standard deducion at the enhanced figure of ₹ 50000.
Year 2019-20 (Financial Year 2018-19) clause (ia) was inserted to
Section 16 of the Income Tax
Act to provide for standard deduction of ₹
40,000 from salary income. The amount of Standard Deduction s increased to ₹ 50,000
from 1st April 2020 ie. financial year 2019-20.
deduction of medical reimbursement of upto ₹ 15,000 and transport
allowance of upto ₹ 19,200 is replaced with the standard deduction of
40,000. Overall an additional benefit of ₹ 5800 comes in the
pocket of salaried people.
from Salary as per Section 16:
Deduction - Section 16 (ia)
From financial year 2018-19 provision of standard deduction of ₹
40000 from salary has been brought back for all salaried class.
Deduction will be ₹50000 from financial year 2019-20.
Standard deduction was introduced and the earlier
allowance and transport allowances were removed. So for the financial
year 2018-19 a fixed amount of ₹
40000 is eligible as
For FY 2019-20 ₹
50000 is eligible
as standard deduction.
Read in detail about the Old & New Tax Regimes and decide about which tax regime you should opt for?
for Entertainment allowance- Section 16(ii)
In case of Government Employees a deduction of
- 1/5th of salary (excluding any allowance, benefit or
of Tax on employment - Section 16(iii)
- whichever is less is admissible as deduction from
salary towards entertainment allwoance provided by employer.
A deduction of tax on employment of any amount if any paid by assessee
is also admissible as deduction from salary.
a Query or a feedback!!! Do write to me at email@example.com....