“is standard deduction applicable in new tax regime“ is a common query among taxpayers. Well, a standard deduction is a flat deduction of Rs. 50k to your “Taxable Income under the salaries head”. You can claim this tax benefit irrespective of the actual amount spent on medical allowance and transport allowance.
What is the purpose of standard deductionTo offer benefits to pensioners
To offer tax relief to middle-class salaried individuals
To allow deduction irrespective of any actual expense
To reduce paperwork
A new tax regime was announced in Budget 2020. Under this new regime, you have an option to pay concessional tax rates. However major exemptions and deductions aren’t allowed under this new regime.
If you choose to file the tax return in the new tax regime, then let me tell you that the standard deduction from salary income isn’t allowed.
Standard Deduction in New Tax Regime| Particularts | Old Tax regime (Financial Year 2021-2022) | New Tax regime (Financial Year 2021-2022) |
Salary income |
Rs. 5 lakhs |
Rs. 5 lakhs |
Standard Deduction |
(50,000) |
N.A |
Taxable salary |
Rs. 4.5 lakhs |
Rs. 5 lakhs |
The standard deduction under Section 80TTB/80TTA, entertainment allowances, and professional tax on salaries
Children education allowance
Helper allowance
Minor child income allowance
House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Any other special allowance
Interest on a home loan on vacant property or self-occupied property (Section 24)
Chapter VI-A deduction (Section 80E, 80D, 80C, etc., except Section 80JJAA and Section 80CCD(2)
Deduction from family pension income
Read more:
How to choose between old and new tax regime?
What is new tax regime?
How to calculate HRA exemption?
I hope I cleared all your doubts about your query on “is standard deduction applicable in new tax regime”.
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Authors Of The Question
Is standard deduction applicable in new tax regime?
Biswa
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2 Year
2022-03-28T15:19:38+00:00 2022-03-30T17:32:56+00:00Comment
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