Pension from ex-employers eligible for Rs 40k standard deduction


Team Udayavani, Apr 5, 2018, 5:23 PM IST

New Delhi: Taxpayers who receive a pension from their former employers are eligible to claim a standard deduction of Rs 40,000, Income Tax department said today.

Keeping income tax rates and slabs unchanged, Budget 2018-19 introduced Rs 40,000 standard deduction for salaried employees and pensioners in lieu of the exemption in respect of transport and medical expenses that was given till last financial year (2017-18).

The Central Board of Direct Taxes (CBDT) said it had received representations as to whether a taxpayer, who receives a pension from his former employer, shall also be eligible to claim this deduction.

“The pension received by a taxpayer from his former employer is taxable under the head ‘salaries’. Accordingly, any taxpayer who is in receipt of a 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 (I-T) Act,” CBDT said in a statement.

The standard deduction was discontinued from the assessment year 2006-07 but was re-introduced in 2018-19 Budget.

In 2017-18, no tax was applicable on Rs 19,200 of transport allowance and medical expenditure of up to Rs 15,000. This has now been subsumed into the new standard deduction of Rs 40,000.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Bantwal: Theft at Shree Mahalingeshwar temple

States not empowered to take over all private properties for distribution to serve common good: SC

Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG

Davangere: MLA Basavantappa returns Rs 1.2 lakh left behind at shop

Woman dies after being hit by luxury car driven by ‘drunk’ youth in Karnataka

MLA Bharat Shetty condemns attack on Edneer Math Swamiji’s vehicle in Kerala

‘Idiot’: Former Canadian Sikh minister slams Justin Trudeau over Khalistan issue

Related Articles More

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Union Minister H D Kumaraswamy booked for threatening police officer

Bantwal: Theft at Shree Mahalingeshwar temple

Delhi riots case: HC dismisses plea by Khalid Saifi against attempt to murder charge

States not empowered to take over all private properties for distribution to serve common good: SC

Chhattisgarh NAN ‘scam’: FIR against 2 retired IAS officers, former AG

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.