For the first time, this tax exemption can be doubled for employed people- no need to look at any documents

Income Tax: As the budget comes closer, many expectations and speculations are being made about the announcement to be made by the Finance Minister for taxpayers. Meanwhile, another big news has come.

According to information received by Moneycontrol from sources, a big announcement can be made on standard deduction. Sources say that the limit of standard deduction can be increased. It can be increased to Rs 1 lakh.

Let us tell you that the standard deduction of Rs 40,000 per annum was re-introduced in Budget 2018, replacing the earlier two deductions – travel allowance (Rs 19,200) and medical deduction (Rs 15,000) per annum.

The limit of standard deduction was increased to Rs 50,000 in the interim budget of 2019. However, there is a constant demand to increase this limit.

A flat tax deduction is available for salaried individuals. For this deduction, an employee does not need to submit any proof or documents to the company or the Income Tax Department.