Standard Deduction in income tax
The meaning of “standard deduction” in the context of income tax rules, refers to a fixed amount of deduction that is applicable to the gross income of salaried individuals, regardless of the actual expenses incurred. The purpose of the standard deduction is to reduce the tax liability and provide relief to the salaried class. The reintroduction of the standard deduction was announce in the Union Budget of 2018, after its removal in a previous budget.
Tax benefits Currently, the standard deduction stands at Rs. 50,000 per year and can claim by all salaried individuals. It is important to note that the standard deduction cannot avail simultaneously with other deductions such as medical insurance, rent, or other tax-saving investments.
To Visit: https://www.incometax.gov.in
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