Standard deduction

Page no : 2

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 16 September 2020

Yes, Section 16(ia) has been introduced by Finance Act, 2018 for class of person whose income is chargeable to tax under head salary. So, if you received pension than also it's available

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Nidhi (Chief Accountant) (3150 Points)
Replied 16 September 2020

Means if person received pension, like family pension, which is charged to tax as IFOS than std deduction not available?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 16 September 2020

Yes, madam you are right
it's available only for income chargeable under head Salary...

Nidhi (Chief Accountant) (3150 Points)
Replied 16 September 2020

If I have a salary for two month only, total 40,000 than can I adjust loss of 10,000 after standard deduction against other sources income.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 16 September 2020

No, Standard deduction is allowable to the extent of :
a) Rs. 50,000 or
b) Amount of Salary, whichever is lower

So, in your case standard deduction of Rs. 40,000 is allowed and Income under head Salary will be NIL

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Nidhi (Chief Accountant) (3150 Points)
Replied 16 September 2020

Thank you, Sagar sir for prompt reply...