What is the standard deduction?
Reviewed by Ranga & Company
Standard deduction: The standard deduction is a flat amount subtracted from salary or pension income before tax, without any proof of expenses: ₹75,000 under the new regime and ₹50,000 under the old regime.
At a glance
- New regime
- ₹75,000 (from FY 2024-25)
- Old regime
- ₹50,000
- Family pension
- ₹25,000 (new regime) or ₹15,000 (old regime)
- Who gets it
- Salaried employees and pensioners
- Proof needed
- None
How it is applied
Your employer deducts it automatically while calculating TDS, and it appears in Form 16. In your return, it is subtracted from gross salary under 'Income from salaries'. If you had two employers in a year, you get it only once.
Who doesn't get it
Business owners, professionals and freelancers paid as consultants (fees with TDS under section 194J) are not salaried, so they cannot claim it. They claim actual business expenses instead.
Common mistakes
- Claiming the standard deduction twice when you changed jobs in the year
- Freelancers claiming it on professional fees
Frequently asked questions
How much is the standard deduction in the new tax regime?
₹75,000 for salaried individuals and pensioners from FY 2024-25. Under the old regime it is ₹50,000.
Do I need to submit proof for the standard deduction?
No. It is a flat deduction allowed to every salaried employee and pensioner without bills or investment proofs.
Can pensioners claim the standard deduction?
Yes. Pension from a former employer is taxed as salary, so the standard deduction applies. Family pension has a separate deduction.
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