Standard deduction for retired salary income remains available when receipts fall within the salary head under the Income-tax Act.

A retired assessee receiving pension and salary-related income remained entitled to standard deduction under the head "Salaries" where the income fell within sections 15, 16 and 17 of the Income-tax Act, 1961. The ITAT followed its earlier view that retirement alone does not take such receipts outside the salary head for standard deduction purposes. The revenue authorities were directed to allow the deduction according to law.

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Issues: Whether a retired assessee receiving pension and salary-related income was entitled to standard deduction under the head "Salaries".

Analysis: The question was examined with reference to sections 15, 16 and 17 of the Income-tax Act, 1961. The Tribunal followed its earlier view that standard deduction is allowable where the income falls under the salary provisions, and the fact that the assessee had retired did not by itself take the receipt outside the scope of the salary head for this purpose.

Conclusion: The assessee was entitled to standard deduction and the revenue authorities were directed to allow it according to law.

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