Dear All,
Just a query, now that medical and conveyance are removed from exemption from Income Tax, so can we keep standard deduction as one of the salary components? IF not then what components needs to be added in place of medical and conveyance ? Currently we have kept components as follows :- Basic, HRA, Medical, Conveyance & Special Allowances
We are a startup so don't want to complicate the salary structure.
Kindly help. Thank you in advance
From India, Pune
1Just a query, now that medical and conveyance are removed from exemption from Income Tax, so can we keep standard deduction as one of the salary components? IF not then what components needs to be added in place of medical and conveyance ? Currently we have kept components as follows :- Basic, HRA, Medical, Conveyance & Special Allowances
We are a startup so don't want to complicate the salary structure.
Kindly help. Thank you in advance
From India, Pune
Dear Friend,
Slandered deductions allowed 40,000 in FY 18-19 and there is no proofs and bills to be submit to claim, This slandered deduction including of Medical & conveyance allowances.
Now this limit has been increased to 50,000 for FY 19-20.
From India, Mumbai
Slandered deductions allowed 40,000 in FY 18-19 and there is no proofs and bills to be submit to claim, This slandered deduction including of Medical & conveyance allowances.
Now this limit has been increased to 50,000 for FY 19-20.
From India, Mumbai
You may continue to keep medical allowance and conveyance allowance as part of the salary structure. Whatever amount of medical and conveyance allowance is given, the same will be added to 'Salaries' head and will be taxable in the hands of the employee. Standard deduction of 40000 (for a.y. 2019-2020) or 50000 (for a.y. 2020-2021) will be deducted from the gross salary.
You cannot add a salary head of 'Standard Deduction' in the salary structure. Standard deduction is only for purpose of calculating Income Tax.
From India, Kolkata
You cannot add a salary head of 'Standard Deduction' in the salary structure. Standard deduction is only for purpose of calculating Income Tax.
From India, Kolkata
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