The
standard deduction U/s 16(1a) was reintroduced in the 2018 budget and amended in the 2019
budget, with the aim of replacing medical allowances and travel allowances for
salaried employees. The standard deduction for salaried persons for 2012-2019
will take effect from 1st April 2019.
It is allowed to deduct every penny for standard deduction Rs. 50,000 / - from F.Y. 2019-20
What is the standard discount?
Earlier transport allowance and medical allowance were sanctioned for the employees so they have to submit the bill of expenditure 2012-201. The standard deduction for the financial year / u 16 (IA) is the replacement of transport allowance and medical allowance.
This is a certain amount deducted from the total salary of the employee, which was approved without submitting any proof.
Standard deduction type
The standard exemption under the 2018 Income Tax has a certain amount of exemption Rs. 40,000 / - which may be deducted from the total salary of the taxpayers by taking their salary or pension income.
The amount of income from rent is also reduced by 30% and brought under standard discount.
Also you may like: Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2020-21 with U/s115 BAC
From the financial year, standard deduction Rs. 50,000 / - is sanctioned for 2019-2020. Note that in F.Y 2018-19 it is Rs. 40,000 / -.
Earlier, medical allowance of Rs. 4,000 / - for treatment. 15,000 / - per annum and transport allowance is substituted instead of the standard deduction of Rs. 19,200/- per annum. 40,000, effective additional benefit due to standard discount is exemption of additional income of Rs. 2,000. 5,800.
Also you may like: Automated Income Tax Preparation Excel Based Software All in One for the Non-Government Employeesfor the Financial Year 2020-21 as per new and old tax regime U/s 115 BAC
FAQ on standard deduction for the F.Y.2020-21 as per U/s 115 BAC.
FAQ on standard deduction
Q&A of standard deduction's for salaried employees
Q: Can I use both standard discounts and personal diduction?
A: Yes, after SD discount you can avail Section 80C, HRA and many more.
Q: What is the standard discount of rupee? 40,000 under Section 16 applies to a person whose sole source of income is interest from FD?
A: No, standard discounts are for salaried and pensioners only.
Q: What will be the standard discount of rupee? 40,000 income tax helpers in India?
Answer: Standard discount means Rs. 5,000 / - for replacement of medical and transport allowance of the employee. 34200. Thus no employee pays Rs. 5800/-
Feature of this ExcelUtility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount into the in-words without any Excel Formula
