New SIDBI Grade A New Batch Starts on Nov 18

    Register

    Question

    What is the amount which is allowed as standard deduction under section 16 from Gross salary while computing the Income under head salary?

    A 20,000 Correct Answer Incorrect Answer
    B 50,000 Correct Answer Incorrect Answer
    C 1,00,000 Correct Answer Incorrect Answer
    D 40,000 Correct Answer Incorrect Answer

    Solution

    Section 16 of the Income Tax Act allows a standard deduction of Rs. 50,000 from the gross salary of an employee. This deduction is available to all salaried employees, irrespective of their income or deductions claimed under other sections. The standard deduction is a flat deduction, which means that it is not dependent on the actual expenses incurred by the employee. It is a way of providing a basic level of tax relief to all salaried employees.

    Practice Next