Income Tax: With the budget approaching, there are many expectations and speculations about the benefits that the Finance Minister may announce for taxpayers. At the same time, another big news has come.
According to information received by Moneycontrol from sources, a big announcement can be made on standard deduction. Sources say that the limit of standard deduction can be increased. It can be increased to Rs 1 lakh.
Let us tell you that the standard deduction of Rs 40,000 per annum was reintroduced in Budget 2018, replacing the earlier two deductions – travel allowance (Rs 19,200) and medical deduction (Rs 15,000) per annum.
In the interim budget of 2019, the limit of standard deduction was increased to Rs 50,000. However, there is a constant demand to increase this limit.
There is a flat tax deduction available for salaried individuals. For this deduction, an employee does not have to submit any proof or documents to the company or the Income Tax Department.
