Standard Deduction
A flat deduction from salary income, available without needing bills or proof, currently ₹75,000 under the new regime and ₹50,000 under the old regime.
In short
- ₹75,000 under the new tax regime, ₹50,000 under the old regime, for salaried employees and pensioners.
- Applies automatically; no bills, receipts, or proof required.
- Already reflected in Form 16 and pre-filled return data, so most taxpayers don't need to claim it separately.
The standard deduction is a fixed amount subtracted from gross salary before tax is calculated, available automatically to salaried taxpayers and pensioners without needing to submit any bills, receipts, or proof of expense. It exists as a simplified stand-in for the actual work-related expenses employees incur, which unlike a business, they generally can't claim individually against salary income.
The amount differs by regime: ₹75,000 under the new tax regime and ₹50,000 under the old regime, for FY 2025-26, following successive increases in recent budgets. Since it applies automatically to salary income, and pension, treated similarly, most salaried taxpayers don't need to do anything special to claim it, it's already reflected in Form 16 and pre-filled return data.
Also referred to as: standard deduction.
Frequently asked questions
Do I need to submit proof to claim the standard deduction?
No. It's a flat amount available automatically to salaried taxpayers and pensioners, with no bills or receipts required.
Is the standard deduction the same under both tax regimes?
No. It's ₹75,000 under the new regime and ₹50,000 under the old regime.
Do pensioners get the standard deduction too?
Yes, pension income is treated similarly to salary for this purpose, so pensioners get the same standard deduction as salaried taxpayers.
Disclaimer
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.