Ramesh, a resident, employed in XYZ Private Limited, an Indian company, has gross annual salary income of Rs. 18,45,000 for F.Y. 2021-22. The standard deduction available under section 16(1) of Income Tax Act, 1961 would be .

Correct option is B

Correct Answer:
(b) ₹50,000

Explanation:

Under Section 16(1) of the Income Tax Act, 1961, a standard deduction of ₹50,000 is available to salaried individuals and pensioners from their gross salary income. This deduction is a fixed amount and applies irrespective of actual expenses incurred.

For F.Y. 2021-22, the standard deduction remains ₹50,000.