Standard Deduction ₹75,000#
What is Standard Deduction?#
Standard deduction is a flat deduction allowed to salaried employees and pensioners from gross salary income.
Updated Limit (FY 2024-25)#
| Category | Standard Deduction |
|---|---|
| Salaried Employees | ₹75,000 |
| Pensioners | ₹75,000 |
| Previous Year | ₹50,000 |
Benefit Calculation#
For a salaried person with ₹10 lakh income:
| Component | Old | New |
|---|---|---|
| Gross Salary | ₹10,00,000 | ₹10,00,000 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Taxable Income | ₹9,50,000 | ₹9,25,000 |
| Tax Savings | - | ₹7,800 |
Who Can Claim?#
- All salaried employees
- Pensioners (government and private)
- Family pension recipients (₹15,000 or 1/3 of pension, whichever is lower)
Key Points#
- Available in both old and new tax regimes
- Reduces taxable income directly
- No need to submit any proof
- Automatically reflected in Form 16