Check sibling questions

Whether Standard Deduction Applicable to Business

No

Standard Deduction of 40000 is available to Salaried Individuals (having Income from Salary)

(This has been increased to 50000 for Financial Year 2019-20)

Standard Deduction is not applicable to people having other types of Income (like PGBP income,Income from Salary etc)

 

Example

Suppose there are 2 persons A and B

Both have Monthly Income of 35000 in Financial Year 2018-19

A is in Job,B is in Business

Calculate Tax for both A and B

Answer

 

Particular  A B
Monthly Income 35000 35000
Annual Income 420000 420000
Less Standard Deduction 40000 0
Net Annual Income 380000 420000
TAX 6500 8500
REBATE 0 0
NET TAX 6500 8500
CESS 4% 260 340
TAX+ CESS 6760 8840
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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.