Rebate of standard deduction

Hi Sir,

Hope you are doing well !

You are eligible for standard deduction.

In a recent clarification issued by the income tax department, if a taxpayer has received pension from the former employer, it is taxable under the head 'salaries'. Therefore, the taxpayer shall be entitled to claim a standard deduction of RS 40,000 or the amount of pension, whichever is less, under the section 16 of the Income tax Act, 1961.

Thanks & Regards,

Payal Chhajed

Dear Sir,

Any amount taxable under the head "Income from Salary" including pension is entitled for standard deduction of Rs. 40,000 from A.Y. 2019-2020.

Thanks

Yes, if your pension TDS is deducted under 192, you are eligible for standard deduction.

Salary and pension are eligible for standard deductions. I understand your company would have deposited deductions made from your salary to LIC so they can keep giving you pension from the amounts so deposited. Nevertheless, the only requirement is the amount should come to you from your employer as pension and not from LIC as a return on investment (e.g. Annuity).

Yes Sir, you are still eligible for standard deduction from F Y 2018-19 provided your tds deducted u/s 192.

It had put the salaried tax payers at par with the consultants , self - employed and freelancer who are allowed to take deduction's on expenses incurred for earning that income.

As per the facts of the case, it appears that your TDS is being deducted u/s 194J,, professionals services. Thus, you wont be eligible for standard deduction.

However, you can take benefit of sec 44ADA, presumptive taxation,

Dear Sir,

If you are working as an consultant then the payment made to you is not taxable as salary. Please check your Form 26AS or Form 16A. In which section Co. has deducted TDS on your income?. If it is u/s 194J then no standard deduction is available to you as it is available to only salaried class people. If it is deducted u/s 192 then available.

Thanks

Hi,

As fast as standard deduction for salary income is concerned, you are eligible for the same but it's applicable from FY 2018-19 onwards.

It's not applicable for the year for which you are now filing your return.

Standard Deduction is available to only salaried persons and not consultants/contract employees, who can infact claim all the expenses on fuel, telephone, office exp., etc.. If you are not working anymore, then you cant even claim such expenses as deductions. In your case, it seems more like an annuity, and not a pension, as employer-employee relationship is must to get std ded.

Hi

Firstly, the standard deduction for Salaries is applicable from FY 18-19 i.e. AY 19-20 onwards.

Secondly, allowability of standard deduction shall depend on how your income is treated by your employer. If its only pension, standard deduction shall be available. However if it is paid along with current consultancy fees and TDS is deducted under 194J, standard deduction shall not be available.

Standard deduction is available but make sure tds is deducted under sec 192 ,because it is available only for salaried class .

It will be available for FY 18-19.

No standard deduction for consultants.

If you are getting pension then it is entitled for standard deduction of Rs. 40,000 from A.Y. 2019-2020 (Fy 2018-19).

Regards,

Nikhil.

However, if you are working as a consultant then you will not be eligible to claim the standard deduction. Please check your Form 26 AS as to under which sec has ypur tds been deducted.

Regards,

Nikhil.

Pension is considered to be a component of salary and is taxable in India. From FY 2018-19, a standard deduction of max. 40,000 is available against taxable salary.

Hello Sir

Yes, you are eligible for standard deduction of INR 40000 or taxable income which ever is lower.

For consultancy income you will be treated as independent person and can claim deduction as prescribed under income tax act