Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) has presented the budget (Budget 2023). The common man has been taken full care of in this budget.
The Finance Minister has taken care of everything from job professionals to farmers and women in the budget. Along with this, the government has also provided relief to the pensioners. For the first time in the country, family pensioners will get the benefit of Standard Deduction. Family pension is the pension which is received by the dependent of an employee after his death.
Finance Minister Nirmala Sitharaman announced in her budget speech today that pensioners getting family pension will also be able to avail standard deduction of Rs 15,000. Except those getting family pension, first other pensioners and salaried employees are getting the benefit of standard deduction. Under this, they can get a discount of up to Rs 50,000.
How much benefit will the family pensioners get?
In the budget, the Finance Minister for the first time announced the benefit of standard deduction on family pension as well. This means that now the taxable income of the person receiving family pension will also be calculated after deducting Rs 15,000 from the total income.
What is standard deduction?
Standard Deduction is the deduction that is deducted from the income of the income tax payer and after that tax is calculated on the remaining income. Salaried Employees and Pensioners are already getting the facility of getting tax exemption through standard deduction. Suppose the annual income of a person doing a job is Rs 8 lakh. In such a situation, if the benefit of standard deduction up to Rs 50,000 is available in the total package, then their tax will be calculated on Rs 7,50,000 instead of Rs 8 lakh.
In India, before the year 2005, there was a provision of standard deduction for salaried individuals, but it was discontinued in the 2005 budget. In the budget of the year 2018, the standard deduction was again implemented and the exemption available in the form of transport allowance and medical reimbursement was abolished.
