Standard Deduction in Income Tax: Deductions are allowed based on the way taxpayers spend their income. At the same time, many important provisions have also been made in income tax. On New Year 2023, it is also important for people to know this provision so that they can get benefit while paying income tax.
Income Tax Slab: The Income Tax Act not only provides provisions for taxing the income of the citizens, but also provides several methods through which any deduction and exemption can be claimed. Deductions are allowed on the basis of the manner in which the taxpayers spend their income. At the same time, many important provisions have also been made in income tax. On New Year 2023, it is also important for people to know this provision so that they can get benefit while paying income tax.
Standard deduction
One such deduction given to people working on salary is considered very important. Salaried individuals and pensioners can avail an exemption by default while filing income tax without any investment or expenditure incurred by the taxpayers. This is called Standard Deduction and was re-introduced during the budget announcement in the year 2018.
Income tax exemption
Standard deduction means a flat deduction for individuals earning salary or pension. From AY 2020-21 onwards, a flat exemption is given to the people under Standard Deduction. Under Standard Deduction, a provision of flat exemption of Rs 50000 has been made to the people. This gives a lot of relief to the tax payers.
50 thousand discount
If a person is earning a salary, then while paying income tax, that person will directly get an exemption of Rs 50,000 under Standard Deduction. To get this exemption of Rs 50000, that salaried person will not have to show any kind of investment or other thing.
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