KOMAN.CO.IN
For long time, the salaried class is demanding to increase the limit of Standard Deduction limit. Since it is most commonly used tax deduction, the salaried class is expecting that the government will increase the limit for the last 5 years. It was last changed in 2019.
There are reports that the government may increase the Standard Deduction limit to Rs. 90,000 in the current interim budget. As of now, the Standard Deduction limit is Rs. 50,000. If the limit is increased, the salaried class get big benefit in terms of tax saving.
What is Standard Deduction?
It is a flat deduction the salaried class can avail from taxable income. The assessee need not show the expenditure or saving. The standard deduction is available for both new and old tax regime.
The Origin of Standard Deduction
It was first introduced in the year 1974. It is available to salaried and pensioners to cover their expenditure. It was removed in 2004-05 and later re-introduced in the year 2018. Then, it was fixed at Rs. 40,000. It was increased to Rs. 50,000 in the year 2019, but it is available only to old tax regime. In 2023, it was applied even to new tax regime.
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