Standard deduction under section 16(i) must be computed on aggregate salary from all employers, not separately for each employer.

Standard deduction under section 16(i) is not separately available against salaries received from each employer. Explanation 1, inserted by the Taxation Laws (Amendment) Act, 1984 with retrospective effect from 1 April 1975, requires the deduction to be computed with reference to the aggregate salary due from, paid by, or allowed by more than one employer, and it cannot exceed the statutory limit under the clause. The effect is that an assessee with multiple employers is entitled to only one consolidated deduction on total salary, rather than separate deductions for each employment.

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Issues: Whether standard deduction under section 16(i) of the Income-tax Act, 1961 is separately admissible in respect of salaries received from each employer, or must be computed with reference to the aggregate salary from all employers.

Analysis: Explanation 1 to section 16(i), introduced by the Taxation Laws (Amendment) Act, 1984 with retrospective effect from 1 April 1975, declares that where salary is due from, or paid or allowed by, more than one employer, the deduction under the clause is to be computed with reference to the aggregate salary due, paid or allowed to the assessee and cannot exceed the amount specified under the clause.

Conclusion: Standard deduction is not admissible separately against each salary; it must be calculated on the aggregate salary from all employers, in favour of the Revenue.

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