New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    What is the standard deduction allowed on income from

    salaries under New Tax regime of Income Tax as announced in the Union Budget 2024-25?
    A Rs.40,000 Correct Answer Incorrect Answer
    B Rs.50,000 Correct Answer Incorrect Answer
    C Rs.60,000 Correct Answer Incorrect Answer
    D Rs.75,000 Correct Answer Incorrect Answer
    E Rs.85,000 Correct Answer Incorrect Answer

    Solution

    The salaried individuals and pensioners can claim a certain amount under standard deduction under Income Tax Act, by default without any investment or spending of money by the taxpayers. The provision was taken down for a number of years and was re-introduced during the Budget announcement in 2018.  With effect from FY 2024-25, under the  new tax regime , the standard deduction is increased to  Rs.75,000 , while salaried taxpayers are eligible for the standard deduction of only Rs.50,000 under the old regime.

    Practice Next

    Relevant for Exams: