If the employee pays tax under the new tax regime of the Income-tax Act, 2025, the standard deduction…
Under the new tax regime, the default regime under the Income-tax Act, 2025 (formerly section 115BAC(1A) of the Income-tax Act, 1961), an employee is entitled to a standard…
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If the employee pays tax under the new tax regime of the Income-tax Act, 2025, the standard deduction from salary income is:
Answer and explanation
Correct answer C
Under the new tax regime, the default regime under the Income-tax Act, 2025 (formerly section 115BAC(1A) of the Income-tax Act, 1961), an employee is entitled to a standard deduction from salary of Rs. 75,000 or the amount of gross salary, whichever is lower. The Finance (No. 2) Act, 2024 raised it from Rs. 50,000, which remains the limit under the old regime.
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UGC NET Commerce