You can claim standard deduction while filing Income Tax Return (ITR).
Standard deduction is a flat deduction allowed under section 16 of the Income Tax Act, 1961.
In India, standard deduction is available for salaried individuals and pensioners. Standard deduction is a fixed amount that is allowed as a deduction from the taxable income of an individual. It helps in reducing the taxable income of individuals and provides relief from tax liability.
Standard deduction is a flat deduction allowed under section 16 of the Income Tax Act, 1961.
standard deduction
In India, the standard deduction was introduced in 1974, which was later discontinued. Union Budget 2018 reintroduced it and currently it is available for salaried individuals and pensioners.
This deduction reduces the taxable income of the individual and hence their tax liability. Standard deduction was applicable only to individuals who opt for the old tax regime, however, from the current financial year (FY 2023-24) the benefit is extended to individuals who opt for the new tax regime, which has been introduced in Was done 2020.
What is the standard deduction for FY 2022-23?
In India, a standard deduction of Rs 50,000 or the amount of salary, whichever is less, is available to all salaried individuals and pensioners. This deduction is available irrespective of the amount of income earned by the individual.
Who can claim standard deduction of Rs 50,000?
Individuals receiving salary or pension from a government organization, private company or any other employer can claim standard deduction of Rs 50,000.
It is important to note that the standard deduction was claimed by those who opted for the old tax regime, however, from the financial year 2023-23 this deduction is available under the new tax regime as well.
Who is not eligible for standard deduction?
Standard deduction of Rs 50,000 or the amount of salary, whichever is less, is available to all salaried individuals and pensioners. Self-employed individuals are not eligible for the standard deduction.
You can claim standard deduction while filing Income Tax Return (ITR).
Furthermore, it is always advised to consult a tax expert or refer to the official Income Tax website for any specific or updated information regarding taxation laws and regulations.
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