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Income Tax efiling in India for FY 2023-24 (AY 2024-25)

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Regular Deductions for Payers

The Income Tax Act not only provides for tax deductions on citizens' income but also provides many ways in which a person can apply for deductions and rebates. Withdrawals are allowed based on how taxpayers spend their money. One such catch is given to people who are leading a normal draw. You should be aware that earners and pensioners can claim a certain amount under normal automatic deductions without any investment or expenditure by taxpayers. Grants have been reduced for several years and re-introduced when the 2018 Budget was announced. Here's what you need to know about the common arrest of leaders.

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 β€˜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 incomeΒ  5,00,000 5,00,000
Standatd DeductionΒ  (50,000) N.A
Taxable salaryΒ  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

The e-filing software automatically processes the catch amount of 50,000 while you enter the email, if you are the lead person.

No, you can only apply for a 50,000 draw for last year 2019-2020. Before that the limit was 40,000.

No, you can only ask for a standard 50,000 deduction and not travel and medical expenses.
MYITRONLINE CEO

Krishna Gopal Varshney

β€œKrishna 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. ”

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