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Standard deduction of rs.40,000

Rudrayani Shedjale (Assistant Accountant) (751 Points)

26 July 2019

If an employee joining on Nov-2018 & we need to give him form 16 for the period from Nov-18 to Mar-19, shall we consider the standard deduction amount as 40,000/-for 5 months?

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6 Replies

Murugan Shanmugam (109 Points)
Replied 26 July 2019

yes u have consider 40000

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debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 26 July 2019

The ITR-1 form notified by the government for FY 2018-19 has simplified filling in salary details this year. The salary details required in ITR-1 is now just a copy-paste of the details available in your Form-16. This is a departure from the manner in which salary details were required to be filled in the previous year.

This year, ITR-1 has been synchronized with Form-16 to enable salaried taxpayers to easily fill in details. In the previous year, the format in which break-up of the salary was required to be filled in was not in sync with the Form-16 which made it difficult for taxpayers to f ill in their details

Form-16 consists of two parts - Part A and Part B. The Part A of Form-16 tells the taxpayer about the total tax deducted by his/her employer and deposited to the government against his/her PAN. It tells the employee the period for which tax is deducted, quarter-wise break-up of how much TDS is deducted and deposited with the government in each quarter, PAN and TAN of your employer. Part B provides detailed ..

The information regarding the same is easily available in Form-16. Standard deduction of Rs 40,000 will be a new detail inserted in Form-16 as it was re-introduced in Budget 2018. The deduction on entertainment allowance is applicable only to government employees for maximum of Rs 5,000 or one-fifth of his salary excluding any allowance, benefit, or other perquisite, whichever is lesser.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 26 July 2019

1. The standard deduction was introduced in place of TA and medical reimbursement from the FY 2018-19. It is standard and irrespective of his salary income it will be allowed as deduction.
2. In your case entire standard deduction of Rs. 40,000 will be allowed for 5 months.
Please correct me if the above interpretation has an alternative view.