Learning article
Standard Deduction for Salaried & Pensioners
A flat deduction available under both regimes — what it is, how much you get, and how it reduces taxable salary.
Quick takeaways
Standard deduction is a fixed ₹50,000 (or ₹75,000 for senior citizens) reduction from gross salary/pension.
It is available in both the old and new tax regimes.
No need to submit any proofs — it's automatically allowed.
Overview
What does standard deduction do?
It is a flat deduction that replaces the earlier transport allowance and medical reimbursement, simplifying the tax calculation for salary income.
Pensioners also get this benefit, treating their pension as salary for tax purposes.
Important facts
How much is it?
₹50,000 for most salaried employees and pensioners.
₹75,000 if you are a senior citizen (60 years or above) receiving pension.
The amount is the same regardless of your salary level; it's a fixed reduction.
Key concepts
In which regimes does it apply?
Old regime: allowed along with other deductions like 80C, 80D, HRA.
New regime: also allowed; it's one of the few deductions retained even in the new system.
Key takeaways
Quick tip
If you only have salary income and no other deductions, the standard deduction still lowers your taxable income and may bring you below the taxable threshold.
FAQs
Common questions
Keep reading
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