Standard Tax Deduction: A standard deduction is also available for pensioners and individuals. So that you can reduce the amount of tax. Through standard deduction, a certain amount is reduced from the taxable income. Due to which your tax amount also reduces.
While filing income tax return, you have to take care of very small things. You need to claim all the necessary deductions to reduce your taxable income. A standard deduction also exists for pensioners and individuals. So that you can reduce the amount of tax. Through standard deduction, a certain amount is reduced from the taxable income. Due to which your tax amount also reduces.
Standard deduction was stopped in the middle
Standard deduction was started in the year 1974 in India. But it was later closed. It was reintroduced in the 2018 Union Budget. Now it has been re-introduced for pensioners and salaried people. So that the tax liability is reduced. This time, in the financial year 2023-24, those who opt for the new tax regime will be given the benefit of this standard deduction.
How much is standard deduction
Standard deduction has been kept at fifty thousand rupees for the salaried. You can claim this even after the actual expenses incurred on medical allowance, transport allowance. Salaried include employees of private companies, government and non-profit organizations. Suppose your taxable income is Rs 100000 lakhs, then you can claim a deduction of Rs 50000 thousand. That is, now you will have to pay tax only on 50 thousand rupees. This deduction is not available to a self-employed person.
How to claim
You have to file your return on the Income Tax Department’s site. When you file ITR, then only you will have to enter the amount of standard deduction. That is, if you are also salaried, then you must take advantage of this standard deduction.
