Standard Deduction Relief: Income tax

Standard Deduction Relief: The decision is done! This time no Income Tax, Finance Minister will give relief to salaried clauses

Standard Deduction Relief: Due to the Corona epidemic, the salaried class could not get any relief in the general budget of 2022-23. This time, a lot of expectations are being made from Finance Minister Nirmala Sitharaman in the budget of 2023-24.

The reason for this is also that this is the last full budget of the government before the elections. In such a situation, it is expected that the Finance Minister will give some relief to the employed people in view of the rising inflation rate after the pandemic.

Tax expert recommended for this time’s budget, tax expert has recommended to increase the limit of standard deduction for the job profession. Experts say that the Finance Ministry should give tax rebate for the working class. In fact, it has become necessary to give relief due to the increase in expenditure on transport, rent etc. due to the reopening of the office. Not only this, at the time of the epidemic, some companies had asked the employees to vacate the rented house and go back to their hometown.

Standard deduction will be 75 thousand rupees!

Now when the companies are calling back the employees. Returning again to Delhi-NCR or other cities to join office has increased the cost of many things. In such a situation, there is a need to update the amount of standard deduction. It is expected from the Union Budget this time that the Finance Minister can increase the standard deduction from Rs 50,000 to Rs 75,000. This will give the needed relief to the taxpayer.

What is Standard Deduction

A limit has been fixed by the Ministry of Finance to give tax relief to the salaried person on all kinds of expenses. The standard deduction of Rs 40,000 on account of medical expenses, transport allowance etc. has been reintroduced in the year 2018-19. Earlier, to give relief from income tax to the salaried class, Rs 19,200 and Rs 15,000 were given as transport allowance and medical allowance. Together these two were a deduction of Rs 34,200.

After this the standard deduction was increased to Rs 40,000 and later it was increased to Rs 50,000. This flat amount is reduced from the gross salary of the taxpayer. There is relief from this tax. It is deducted from the salary of every employed person. There is no need for any kind of claim to get exemption under this.