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Q. |
Manoj,a resident, employed in ABC Ltd., an Indian company, has gross annual salary income of Rs. 20,60,000. The standard deduction available under section 16(1) would be _________ . |
A. | Nil |
B. | Rs. 30,000 |
C. | Rs. 40,000 |
D. | Rs. 50,000 |
Answer» D. Rs. 50,000 | |
Explanation: The standard deduction available to Manoj under section 16(1) of the Indian Income Tax Act would be Rs. 50,000. This standard deduction is available to all taxpayers in India who receive salary income and is intended to reduce the tax burden on individuals by allowing them to claim a fixed deduction from their gross salary income. |
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