Income-tax Act, 2025

Deductions from salaries - Section 19

Deductions from salaries.

19. (1) The income chargeable under the head "Salaries" shall be computed after making the deductions in respect of sums of the nature mentioned in column B of the following Table, not exceeding the amount as mentioned in column C thereof:

TABLE

Sl. No.
Nature of sum
Amount of deduction

A
B
C

1.
Sum paid by the assessee as a tax on employment as per article 276(2) of the Constitution, leviable by or under any law.
Entire amount.

2.

Standard deduction.

(a)

Rs. 75000 or the salary, whichever is less, where income-tax is computed under section 202(1);

(b)

Rs. 50000 or the salary, whichever is less, in any other case.

3.
Death-cum-retirement gratuity received as referred to in sub-section (2)(g).
Entire amount.

4.
Payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services.
Entire amount.

5.
Gratuity received under the Payment of Gratuity Act, 1972 (39 of 1972).
Amount received, as restricted to the amount calculated as per the provisions of section 4(2) and (3) of the said Act.

6.

Any other gratuity received by an employee

(i)

on his retirement; or

(ii)

on his becoming incapaci-tated before such retire-ment; or

(iii)

on termination of his employment.

Amount being minimum of

(a)

actual gratuity received;

(b)

amount specified by the Central Government, by notification, having regard to the limit applicable in this behalf to the employees of the Central Government; and

(c)

half month's salary for each completed year of service, calculated as under:

where,

A = average salary for ten months immediately preceding the month when any such event occurs;

B = .... To read the full section download the app from Google Play store