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 |