Apr 06, 2018
Standard deduction of Rs 40,000 allowed on pension from ex-employers, says I-T Department
Pensioners can also avail the standard deduction of Rs 40,000 that was extended to salaried persons under Budget 2018-19, the taxman has clarified. The Central Board of Direct Taxes (CBDT) has said that taxpayers who receive a pension from their ex-employers are also eligible for the same standard deduction as salaried persons.
The statement comes in the light of representations received by the CBDT as to whether a taxpayer, who receives a pension from his/her former employer, shall also be eligible to claim this deduction.