WILL PENSIONERS GET STANDARD DEDUCTION OF RS.40000 FROM FY 2018-19

Hi! After Budget 2018 announcement about standard deduction of Rs.40000 on salary, confusion arise that whether this deduction is applicable on pension or not?

So , 
"The Central Board of Direct Taxes (CBDT) has clarified that the pension received by a taxpayer from his former employer is taxable under the head "Salaries". The Finance Act, 2018 has amended Section 16 of the Income-tax Act, 1961("the Act") to provide that a taxpayer having income chargeable under the head "Salaries" shall be allowed a deduction of Rs. 40,000/- or the amount of salary, whichever is less, for computing his taxable income. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of Rs.40,000/- or the amount of pension, whichever is less, under Section 16 of the Act," said the press release.

following is link to download press release:

now pensioners are also eligible for standard deduction as clarified above from FY 2018-19.
Thanks

Comments

  1. I am really very happy for the nice approach is visible in this blog and thank you very much for using the nice technology in this blog.I really appreciate your work.If you require about Company registration cost in delhi | company registration online delhi please click on it.

    ReplyDelete

Post a Comment

Popular posts from this blog