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Standard deduction in income tax explained

The standard deduction is the simplest tax benefit there is — a flat amount removed from your salary with nothing to invest or prove. Here's how the standard deduction works and how much you get.

Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13

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  1. 1. A flat deduction with no conditions
  2. 2. Rs 75,000 in the new regime
  3. 3. Rs 50,000 in the old regime
  4. 4. It applies to pensioners too
  5. 5. You don't have to do anything to claim it
  6. Common questions

Quick answer

The standard deduction is a flat cut from salary or pension — Rs 75,000 in the new regime, Rs 50,000 in the old. Here's how it works.

1. A flat deduction with no conditions

The standard deduction is a fixed amount subtracted from your salary or pension income automatically, regardless of your actual expenses. There's nothing to invest, no bills to keep — every salaried person and pensioner simply gets it. It's the easiest reduction to your taxable income.

2. Rs 75,000 in the new regime

In the new regime, the standard deduction for salaried taxpayers and pensioners is Rs 75,000. This higher figure is one of the reasons the new regime works out well for most salaried people, and it's a key part of why salary up to about Rs 12,75,000 can be tax-free.

3. Rs 50,000 in the old regime

In the old regime, the standard deduction is Rs 50,000. It applies on top of the other old-regime deductions you claim — 80C, HRA, 80D and so on — rather than instead of them.

4. It applies to pensioners too

The standard deduction isn't only for those currently employed — pensioners receiving pension as salary income also get it. This is a useful, often-overlooked benefit for retirees with a pension.

5. You don't have to do anything to claim it

Because it's automatic, the standard deduction is applied in your tax computation without any action on your part — your employer factors it into TDS, and it appears in your return. Just make sure the correct amount for your regime is reflected.

Common questions

1How much is the standard deduction in income tax?

Rs 75,000 in the new regime and Rs 50,000 in the old regime , for salaried taxpayers and pensioners. It's a flat amount with no conditions or proof required.

2Do I need to invest anything to claim the standard deduction?

No — it's automatic and flat, with nothing to invest or prove. Every salaried person and pensioner gets it, and it's applied in your tax computation without any action.

3Do pensioners get the standard deduction?

Yes — pensioners receiving pension taxed as salary also get the standard deduction , the same amounts as employees. It's a commonly-missed benefit for retirees.

Want to be sure every deduction, starting with the standard one, is applied to your return? Write to the firm.