Income tax: Standard deduction limit may be increased in Budget 2021
To boost consumption in a pandemic-battered economy, the hike in standard deduction will be a good idea, according to experts
The standard deduction for salaried employees should be increased to ₹1 lakh in India in Budget 2021, FICCI said
In a relief to salaried middle class taxpayers amid a global pandemic, the central government may hike the standard deduction limit in the upcoming Budget 2021, the experts said. Standard deduction is a fixed deduction that is allowed to specific income tax assessees, irrespective of expenses incurred or investments made. Introduced in the 2018-19 Budget, the standard deduction replaced the medical and transport allowance. At that time, a salaried individual or pensioner could claim standard deduction up to ₹ 40,000 from their income. It was further increased to ₹50,000 in the following Budget.