Under the default tax regime of section 115BAC(1A), standard deduction from salary is up to
A25,000
B40,000
C75,000
D60,000
Answer & Solution
Correct answer: C. 75,000
1. The standard deduction limit depends on which regime the assessee is taxed under.
2. Where the assessee pays tax under the default regime of section 115BAC(1A), the limit is 75,000.
3. Where the assessee shifts out of that default regime, the limit is 50,000.
4. In each case the deduction is the amount of salary or that ceiling, whichever is less.
5. Quoting a single figure without naming the regime is what makes most answers wrong here.
_Source: ICAI Income Tax Law, Ch3 'Heads of Income', Unit 1 'Salaries', section 1.4_
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