NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Mr. Raghav Iyer, a resident individual, has a gross salary of ₹9,00,000 and no other income. He opts for the new tax regime. Ignoring the rebate, surcharge and cess, and assuming the standard deduction of ₹75,000 applies, what is his taxable income?
His taxable income is ₹8,25,000. Under the new regime the only major deduction from salary is the standard deduction of ₹75,000, so ₹9,00,000 minus ₹75,000 gives ₹8,25,000, before computing tax on the slab rates.
- A₹9,00,000
- B₹8,25,000Correct
- C₹7,50,000
- D₹8,50,000
Explanation
Under the new regime, the standard deduction for salaried individuals is ₹75,000 (assumed per the question). Taxable income = 9,00,000 - 75,000 = ₹8,25,000. Using ₹50,000 would give ₹8,50,000, which is the older standard deduction figure; ₹7,50,000 wrongly deducts ₹1,50,000.
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