Income Tax Standard deduction for salaried persons 2021
Welcome to our another new article about “Income Tax Standard deduction for salaried persons 2021” is most important for salaried persons who want to get more tax benefits. In this article you will able to know what is standard deduction in India.
Standard deduction is the portion of income which can be used to reduce your tax. You can take standard deduction if you are eligible. The amount of standard deduction depends upon your filing status , age etc.
The income tax is charged by the government of the nation over the income of the general public .and standard deduction is that part of income which is not taxable. The government allows taxpayers to deduct some portion of the amount from total earnings . After deduction of the remaining amount will be taxable.
For example: if a person earning Rs. 5,00,000 and his standard deduction is Rs. 40,000. Then his taxable income will be Rs. 5,00,000 – Rs. 40,000= Rs. 4,60,000. That means the person will have to pay tax on Rs. 4,60,000.
Amendment of Standard deduction during interim budget 2019
Indian budget passes February month of every year. But during the election year, it is not possible for the ruling government to present a full budget . so the government presented an interim budget to manage for a few months . After the election the new government prepared to present the full budget for the next financial year.
The interim budget presented on 1 february 2019 included some tax benefits for salaried employees. Among all tax benefits the standard deduction has been increase from रु 40,000 to रु 50,000 for financial year 2019-20( assessment year 2020-21) – According to “standard deduction under section 16(ia)”
Amendment – if a taxpayer receives pension from the former employer is taxable under the head of salary.(standard deduction for ay 2020-21)
Example:
CONCLUSION:
from the above discussion it can be concluded that, the individual, assessee or taxpayer will get more benefit as standard deduction in 2020-21. He will not get transport allowance and medical allowance in 2020-21 still he will get more benefited.
Tags: standard deduction for senior citizens, standard deduction meaning , standard deduction for 2020-21
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