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
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
Dear Sir/Madam,
When an employee leaves in the middle of a financial year (say in June in FY 2019-20), can standard deduction amount of Rs 50000/- be fully considered for computing the income taxes payable on the 3 months' (Apr, May & Jun) salary or? Please advise. Thank you in advance.
When an employee leaves in the middle of a financial year (say in June in FY 2019-20), can standard deduction amount of Rs 50000/- be fully considered for computing the income taxes payable on the 3 months' (Apr, May & Jun) salary or? Please advise. Thank you in advance.
Salary information is something that I and many others care about. Timely and accurate feedback.
fnaf
fnaf
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