SEO Sai Gr. Hosp.
211715 Points
Posted on 13 December 2018
A Standard Deduction is nothing but a fixed amount of deduction.
U/s. 16(ia) of IT act, an amount of Rs 40,000 which can be reduced by taxpayers receiving salary or pension income, from their gross salary.
To claim this standard deduction, there is no need to submit any bills to your employer(s) or the IT department.
As per this new provision, irrespective of amount of taxable salary the assessee will be entitled to get a deduction of Rs.40,000 or taxable salary, whichever is less.
Thus suppose if a person has worked for few days (or) months and his salary was just Rs 40,000 in current financial year, then he/she will be entitled to a deduction equal to salary being the same amount.
If his salary is less, say Rs 30,000 the deduction shall be restricted to Rs 30,000. If salary exceeds amount of Rs 40,000, the deduction shall be restricted to Rs 40,000.
So, ideally your Form-16 will reflect a fixed deduction of Rs 40,000 in lieu of Conveyance and Medical allowances w.e.f AY 2019-20.