Standard deduction on salary
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 December 2018
An assessee received Salary Income of Rs.45000/- for the month of April 2018. He resigned and is now doing business and has earned Net profit of more than 500,000/- upto October 2018.
The question is - Can he take full benefit of Rs.40,000/- as standard deduction from salary or proportionately for a month??
Please reply.
The question is - Can he take full benefit of Rs.40,000/- as standard deduction from salary or proportionately for a month??
Please reply.
Message likes :
1 times
16 December 2018
he will get the deduction only to the extent provided for in the salary slip for Month of April.
16 December 2018
Sir, I am taking about deduction under section 16(ia) which says :
16(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;
16 December 2018
dear Student, the allowance cannot exceed the amount that was paid under the relevant head...so if you received allowance which would normally be around Rs 3333 for a month, how would you claim 40K.
17 December 2018
I understood Sir, but where does section 16 say anything about allowance. It's a standard deduction. Budget 2018 has made changes to Rule 2BB, whereas section 16(ia) doesn't speak about allowance.
17 December 2018
actually, you may be correct here. the language does suggest that 40K deduction or salary whichever is lower. So I withdraw my earlier response!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
