Standard deduction means a uniform deduction for individuals earning salary or pension income. It was introduced in Budget 2018 in lieu of waiver of transport allowance and reimbursement of several medical expenses. The standard deduction limit in the old regime for the financial year 2022-23 is Rs 50,000.
Income Tax Return: People get many benefits while filing income tax. Through these benefits, people can reduce their income tax. Also, through these exemptions, the tax liability of the people decreases. On the other hand, if your salary comes, then people also get an extra benefit. When salary comes, people can take advantage of standard deduction. Let’s know about it…
Standard Deduction
Standard deduction means a uniform deduction for individuals earning salary or pension income. It was introduced in Budget 2018 in lieu of waiver of transport allowance and reimbursement of several medical expenses. The standard deduction limit in the old regime for the financial year 2022-23 is Rs 50,000. And according to Budget 2023, salaried taxpayers are now eligible for standard deduction of Rs 50,000. From the financial year 2023-24, the benefit of standard deduction of Rs 50,000 / is also available under the new tax regime. Standard deduction is a flat deduction.
Tax Relief
There is no paperwork under the benefit of Rs 50,000 available under the standard deduction and deduction is available regardless of the actual expenses. Also, middle class salaried individuals get tax relief from this. Along with this, pensioners also get benefit from this. Announcing the Budget 2023 on February 1, 2023, Finance Minister Nirmala Sitharaman had said that it is proposed to increase the benefit of standard deduction in the new tax regime for pensioners including salaried class and family pensioners. Thus every salaried person will be eligible for it.
Salary
Salaried individuals will get a standard deduction of Rs 50,000 if they opt for the new tax regime. As per Budget 2023, pensioners can claim a standard deduction of Rs 50,000 from their salary/pension income under the new income tax regime. As per the Budget 2023 proposal, family pensioners will get a standard deduction of Rs 15,000.
