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      Question

      Which of the following deductions is/are available as

      deduction from income under both the old and new tax regime of Income Tax?
      A Medical insurance deduction Correct Answer Incorrect Answer
      B Standard Deduction Correct Answer Incorrect Answer
      C HRA deduction Correct Answer Incorrect Answer
      D Provident fund deduction Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Section 16 of the Income Tax Act allows a standard deduction from the gross salary of an employee. This deduction is available to all salaried employees, irrespective of their income or deductions claimed under other sections.The standard deduction is a flat deduction, which means that it is not dependent on the actual expenses incurred by the employee. It is a way of providing a basic level of tax relief to all salaried employees. Salaried individuals' standard deduction under the old regime is Rs.50,000 , whereas in the case of the new regime, the limit has been increased to Rs. 75,000 for the FY 2024-25.

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