Understanding Standard Deductions: Do They Change if You Resign or Retire Mid-Year?

Raj Bhagwat

Hi, Good Morning All. As you all know, the standard deduction of Rs. 50k is allowed under section 16(ia) of the Income Tax Act for salaried employees. I just want to know if an employee resigned or retired on 30th June in a financial year, will the standard deduction be proportionate for 3 months at Rs. 12,450/- or will it remain Rs. 50k only.

Kindly comment...

Regards,
Mr. Raj Bhagwat
Deputy Manager - HR

KK!HR

The standard deduction is for the earnings in the whole year, so it is Rs. 50K. The employee may draw some income after leaving service too.

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