What Is Standard Deduction Under Section 16(Ia)?

Standard deduction under Section 16(ia) is a flat deduction that is allowed from the salary income. The concept of standard deduction was introduced in the Union Budget of 2018 wherein it replaced the tax-deductible transport allowance and medical allowance of INR 19,200 and INR 15,000 respectively.

What is standard deduction under section 16 A?

Standard Deduction From Salary under section 16 (ia)

The budget – 2018 provided for a standard deduction of Rs 40,000 in place of transport allowance and medical reimbursement. This deduction of Rs 40,000 does not require a taxpayer to submit any bill or proof of the expenditure.

What is Section 16 IA in income tax?

Benefit of Standard Deduction is only for Salaried Individuals. Deduction u/s 16(ia) states that a tax payer having income chargeable under the head 'Salaries' shall be allowed a deduction of ₹ 40,000 or the amount of salary, whichever is less, for computing his total income.