Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What it is
The standard deduction is a fixed amount subtracted from your salary or pension income before tax — no bills, no investment, no proof required. It is meant as a rough allowance for work-related expenses, and everyone with salary or pension income gets it automatically.
The amounts in each regime
For FY 2025-26, it is ₹75,000 under the new regime and ₹50,000 under the old regime. This is one of the few deductions that survives in the new regime — and at a higher figure — which is part of why the new regime is attractive for straightforward salaried taxpayers. Confirm the current amounts per the Finance Act.
A worked example
Example: on a salary of ₹12 lakh under the new regime, ₹75,000 is deducted straight away, so tax is computed on ₹11.25 lakh — before slabs and rebates. A pensioner receiving a pension also claims it. Because it needs no paperwork, it is the simplest saving available and applies in addition to the slab structure. Our team can factor it into your regime comparison.