Is standard deduction applicable to all the salaried person whether he/she is getting pension?
Salaried employees are allowed to claim a deduction of ₹50,000 under Section 16(ia) of the Income-tax Act. In the Union Budget 2018, a standard deduction of ₹40,000 was introduced for salaried employees, which was increased to ₹50,000 in the subsequent Budget.
When senior citizens can claim deduction: Section 16 (ia) covers individuals, including salaried employees and pensioners, which means senior citizens are also eligible to claim this deduction, provided they are earning pension income or salary income.
The benefit of standard deduction will be allowed to pensioners only if it is taxable as salary income.In case it is charged to tax as other source income then the benefit of standard deduction will not be available.