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
  1. Practical Income Tax
  2. Income Tax for Small Business

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.