Standard Deduction (SD)

Arnold20 Oct, 2021Finance

Standard deduction under 16 ia is allowed under section 16ia of Income Tax Act. The standard deduction replaced transport allowance of Rs 19200 and medical reimbursement of Rs 15000. In the budget ? 2018 our Finance Minister Jaitley introduced it. 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. It provides for a flat deduction of Rs 40,000.