Standard Income Tax Deduction for Salaried Employee
Standard Deduction for tax calculation available on the gross salary of salaried employees
The Minister of State for Finance said in the Parliament on 7th Feb 2023 that the proposals in this regard have been examined during various budgetary exercises and the outcomes are reflected in the Finance Bills in the respective years.
He added, that Section 16 of the Income-tax Act, 1961 (the Act), inter alia, provides for certain deductions in computing income chargeable under the head “Salaries”. Finance Act, 2018 amended section 16 of the Act to allow a standard deduction of up to Rs. 40,000 or the amount of salary, whichever is less.
The value of the deduction has been increased from Rs. 40,000 to Rs. 50,000 by the Finance Act, 2019. Since “salaried employees” is not a separate category of the taxpayer under the Act (as an individual may have income from sources other than salaried also), data regarding tax incentives for the salaried class is not separately maintained.
There are no other financial incentives related to taxes given to salaried employees by the
Latest Updates on Income Tax
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Also Check: Central Government Pay Matrix Table 2022 PDF
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