Standard deduction limit raised to Rs. 50000 For salaried persons

STANDARD DEDUCTIONS RAISED

While presenting interim Budget 2019-20 FM has raised Standard deduction for salaried persons.

For salaried persons, Standard Deduction is being raised from the current  Rs.40,000 to Rs.50,000. “This will provide additional tax benefit of  Rs.4,700 crore to more than 3 crore salary earners and pensioners”, the Finance Minister informed.

Proposed Amendment in Section 16 of Income Tax Act, 1961

In section 16 of the Income-tax Act, 1961 (hereafter in this Chapter referred to as the Income-tax Act), in clause (ia) [as inserted by section 7 of the Finance Act, 2018], for the words “forty thousand”, the words “fifty thousand” shall be substituted with effect from the 1st day of April, 2020.