In a relief to salaried middle-class taxpayers amid a global pandemic, the central government may hike the standard deduction limit in the upcoming Budget 2021, the experts said. The standard deduction is a fixed deduction that is allowed to specific income tax assessees, irrespective of expenses incurred or investments made.
Introduced in the 2018-19 Budget, the standard deduction replaced the medical and transport allowance. At that time, a salaried individual or pensioner could claim standard deduction up to ₹ 40,000 from their income. It was further increased to ₹50,000 in the following Budget.
There are a lot of expectations from Budget 2021 as it would be presented amid the COVID-19 pandemic which has caused significant disruption in the lives of many as well as severely impacted the economy. To boost consumption in a pandemic-battered economy, the hike in the standard deduction will be a good idea, according to experts.
The Federation of Indian Chambers of Commerce & Industry (FICCI) has suggested that the standard deduction for salaried employees should be increased to ₹1 lakh in India in Budget 2021.
🕑 24 Apr, 2025 10:21 PM
Staff Side constitutes panel for drafting memorandum to 8th CPC when formed
🕑 24 Apr, 2025 10:17 PM
8th Pay Commission likely to be set up by mid May
🕑 09 Apr, 2025 10:27 AM
Loan EMIs to get Cheaper as RBI cuts Repo Rate sgain | See the benefit
🕑 04 Apr, 2025 04:49 PM
AICPI-IW declines again, may affect DA hike in July 2025
🕑 02 Apr, 2025 08:27 AM
8th Pay Commission update: Standing Committee of NC-JCM to meet on April 23
🕑 02 Apr, 2025 08:11 AM
Holiday declare for 14th April, 2025 – Birthday of Dr. B.R. Ambedkar
🕑 28 Mar, 2025 04:24 PM
Cabinet approves 2% Dearness Allowance hike from January 2025
🕑 26 Mar, 2025 03:07 PM
Will Govt Delay 8th CPC Implementation? Amendment Sparks Fears
🕑 26 Mar, 2025 11:11 AM
Government Progresses Towards Establishment of Eighth Pay Commission
🕑 04 Apr, 2025 04:46 PM
NPS To UPS Switch from April 1: A Detailed Look at the Option to Switch
🕑 30 Mar, 2025 11:01 AM
8th Pay Commission implementation may get delayed till 2027 – Here’s why
🕑 27 Mar, 2025 10:25 PM
7th CPC wanted a permanent pay panel, end DA revision twice
🕑 27 Mar, 2025 08:43 AM
8th Pay Commission: What Kind Of Salary Hike Can Be Staff Expected?
🕑 20 Mar, 2025 08:24 AM
Why the commuted pension is restored after 15 years, not 12 years
🕑 17 Mar, 2025 08:37 AM
📈 Expected Dearness Allowance (DA) from January 2026 Calculator
🕑 05 Mar, 2025 09:27 PM
8th CPC to reduce number of allowances applicable to employees, pensioners?
