Income Tax exemption is a monetary exemption that reduces the taxable income of an individual. This decreases total taxable income and reduces the amount of income tax you would have otherwise paid. Deduction under chapter VI-A is restricted to Gross total income & this deduction cannot be carried forward. Let us discuss the following deductions covered u/s VI-A
Showing posts with label Advance Income Tax Calculator for A.Y.2019-20. Show all posts
Showing posts with label Advance Income Tax Calculator for A.Y.2019-20. Show all posts
Wednesday, 31 October 2018
Tuesday, 7 August 2018
Medical and Transportation Allowances Subsumed into Standard Deduction
Standard Deduction: Budget
2018 has not cheered the Salaried Class at all, neither the tax slab is
changed nor the deduction limit under section 80C is hiked. The tax
rebate of Rs.5,000 has been reduced to Rs.2,500 and that too up to the
taxable income of Rs.3,00,000 which was earlier up to Rs.5,00,000.
The
only changed proposed for the salaried class is the reintroduction of
Standard Deduction of Rs.40,000. This standard deduction was the part of
income tax act but was done away with in Union Budget 2005-06 by P.
Chidambaram by introducing medical and transportation allowances, but
now from Assessment Year 2019-20, both medical allowances and
transportation allowance are subsumed into the standard deduction of
Rs.40,000.
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