CA Intermediate · Taxation · Salaries
Meera is employed with a private company in Pune and opts for the default (new) tax regime for tax year 2026-27. Her only income is a salary of ₹9,00,000 for the year, all of it taxable, with no perquisites or allowances beyond this. What is her income chargeable under the head Salaries for the tax year?
Income under Salaries is ₹8,25,000. Under the default regime the standard deduction is ₹75,000, which is subtracted from the ₹9,00,000 salary. The ₹50,000 deduction applies only under the old regime, so using it gives the wrong answer.
- A₹8,25,000Correct
- B₹8,50,000
- C₹9,00,000
- D₹8,00,000
Explanation
Under the default regime, a standard deduction of ₹75,000 is allowed against salary income. Income chargeable under Salaries = 9,00,000 - 75,000 = ₹8,25,000. The figure ₹8,50,000 wrongly uses the ₹50,000 standard deduction of the old regime.
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