Skip to content

CA Intermediate · Taxation · Salaries

Mr. Deepak Joshi, a salaried individual of a private company, receives a basic salary of Rs 50,000 per month and is also given a free meal coupon facility for office days. Which of the following statements regarding his salary income computation for tax year 2026-27 is correct as to standard deduction under the new tax regime under the Act?

A standard deduction of Rs 75,000 is allowed against salary income under the new regime. The Rs 50,000 deduction applies to the old regime, and the deduction is a fixed amount, not a percentage of salary.

  1. AStandard deduction of Rs 75,000 is allowed against salary incomeCorrect
  2. BStandard deduction is not allowed under the new regime
  3. CStandard deduction of Rs 50,000 is allowed only if he opts for the new regime
  4. DStandard deduction equals 30% of salary

Explanation

Under the default regime under section 202 the standard deduction for salaried individuals is Rs 75,000, allowed from salary income. The Rs 50,000 amount applies to the old regime. It is not a percentage of salary.

Did you get it right without looking?

One question tells you little. A timed set on Salaries shows your real accuracy, how long you take and where you lose marks.

Practise SalariesFree diagnostic mock

More Salaries questions