What is Standard Deduction in Income Tax: Know New Limits and Calculation

The article on Taxscan discusses the standard deduction in income tax for salaried employees in India. The standard deduction, reintroduced in the 2018 budget, is a flat deduction from the gross salary, simplifying tax calculations. Initially set at ₹40,000, it was increased to ₹50,000 in the 2019 budget. This deduction replaces the earlier transport allowance and medical reimbursement benefits. It aims to provide tax relief to salaried individuals, reducing their taxable income and overall tax liability. The article highlights the calculation method, emphasizing that no specific bills or proofs are required to claim this deduction, making it straightforward and beneficial for taxpayers.