Standard Deduction
Income Tax: Govt may increase standard deduction by 30-35 pc
New Delhi/IBNS: The government is mulling an enhancement in the tax bracket for the salaried individuals by 30-35 percent in the upcoming budget while keeping the existing income tax slabs unchanged, media reports said.
The current standard deduction stands at Rs 50,000 and industry bodies have suggested that this limit be increased, especially in view of the inflated cost of medical expenses on account of Covid-19, reported Economic Times.
A standard deduction of Rs 40,000 was introduced in 2018 by the then Finance minister, the late Arun Jaitley.
The proposal to increase the standard tax deduction by 30-35 percent and is subject to final approval, depending on the latest tax collection situation, the report said, citing sources.
In their pre-budget meetings, trade bodies including Assocham and Confederation of Indian Industries (CII) have sought higher standard deduction, it added.
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