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Standard deduction of salary and pension

Others 329 views 4 replies
If employee retired in October nd from Nov onwards he gets the pension, then how much is standard deduction....40000 or 80000
Replies (4)

Rs.40,000/-.

1. According to sec 16(ia) standard deduction will be allowed to an employee if he earns a salary income. 
2. In your case income earned up to October and pension earned from November, both will be charged to tax under the head salary and standard deductions of Rs. 40,000 will be allowed during the year. 
Please correct me if the above solution has an alternative view. 

Rs. 40,000/-

40000 will be your standard deduction. Pension too forms part under Income from the head salary.


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