Income Tax efiling in India for FY 2023-24 (AY 2024-25)
We have changed the way people do tax filing in India. We don’t just get your tax return filed within minutes but get you maximum refunds in shortest time.
File ITR Now Hire eCA NowRegular Deductions for Payers
General Drawing - Union Budget for 2018
Finance Minister Jaitley introduced the General Debit of Rs. 40,000 in the 2018 Budget, which gives the leading class something to be excited about. It replaces the Rs. 19200 and medical reimbursement of Rs. 15,000 per year. Interestingly, the provision of Standard Deduction was pre-existing. However, it was abolished in the Finance Act 2005. Regular arrests are usually deducted from the gross salary and are claimed as exemptions. These deductions can be claimed by all leading employees regardless of the category and need for any investment.
General Capture - Interim Budget for 2019
The Interim Budget introduced on 1 February 2019 included many tax benefits for both middle and middle income. Among them, an additional amount of Rs. 10,000 (increased from Rs.40,000) to the General Draw is a significant step. With the General Debt now Rs 50,000, it will help taxpayers significantly reduce their tax evasion Let's understand this in a small example:
| Particulars | Until AY 2018-19 | From AY 2019-20 | From AY 2020-21 |
| Gross Salary (in Rs.) | 8,00,000 | 8,00,000 | 8,00,000 |
| (-) Transport Allowance | 19,200 | Not Applicable | Not Applicable |
| (-) Medical Allowance | 15,000 | Not Applicable | Not Applicable |
| (-) Standard Deduction | Not Applicable | 40,000 | 50,000 |
| Net Salary | 7,65,800 | 7,60,000 | 7,50,000 |
Taxpayers Receiving Pension
In the latest definition issued by the tax department, if a taxpayer receives a pension from a previous employer, the tax under the heading ‘Salaries’. Therefore, the taxpayer may require a standard deduction of Rs. 40,000 * or the amount of a pension, depending on the minimum. * Up to Rs 50,000 FY 2019-2020 (AY 2020-21) over the interim budget for 2019.
Our Take
All that is said and done, although the impact of this amendment on paymasters may seem small, employers, in this step, will benefit most from avoiding all administrative efforts to process medical bills. its employees. Probably, that was the purpose of the legislature.
Standard deduction in case of New Tax regime
The 2020 budget introduces a new tax system. Under the new regime, taxpayers have the option of paying the tax rates for the contract, however major deductions and exemptions are not allowed under this new regime. Ordinary deductions allowed on receivables are also not allowed when taxpayer to complete a rebate on a new tax system.
| Particulars | Old Tax regime (FY 2021-22) | New tax regime (FY 2021-22) |
|---|---|---|
| Salary income | 5,00,000 | 5,00,000 |
| Standatd Deduction | (50,000) | N.A |
| Taxable salary | 4,50,000 | 5,00,000 |
How is standard deduction calculated in case of multiple employers in one year?
Ordinary deductions are available as deductions from the total amount earned by an employee in a particular financial year. It does not depend on the number of jobs the employee has changed. Therefore one deduction is deducted from the collective income earned by all employers. At FY 2020-21, the average catch is still the same as last year at Rs.50,000.
Frequently asked questions
How do I claim regular ClearTax software downloads?
Can i claim deduction of 50,000 for previous returns also?
Can I claim transport allowance and medical allowance as well along with standard deduction?
Krishna Gopal Varshney
“Krishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”