Standard Deduction: ₹75,000 Off Your Salary
No bills, no proof, no paperwork — the standard deduction comes off your salary automatically. It's ₹75,000 in the new regime, and it's the rare deduction you keep whichever regime you choose. Here's how it works.
Check my take-home tax →The standard deduction is a flat amount taken off your salary or pension before tax — with no proof required. It's ₹75,000 under the new regime and ₹50,000 under the old. Unlike 80C, HRA or 80D, you get it in both regimes — it's applied automatically.
How much you get
The figure depends only on which regime you file under — nothing else.
Raised from ₹50,000, this is the deduction most salaried people now get by default.
Unchanged — but here you can stack it with 80C, HRA, 80D and the rest.
It's what makes ₹12.75 lakh tax-free
You may have heard that salary up to ₹12.75 lakh pays no tax in the new regime. The standard deduction is the reason the number is ₹12.75 lakh, not ₹12 lakh.
In the new regime, a resident's income up to ₹12 lakh is effectively tax-free thanks to the Section 87A rebate. Add the ₹75,000 standard deduction, and a salary of up to ₹12.75 lakh comes to nil tax.
Who the standard deduction is for
Salaried employees
Anyone earning a salary — it's deducted from your gross salary on the return.
Pensioners
Pension from a former employer is treated as salary, so retirees get it too.
Family pensioners
A separate deduction on family pension — ₹25,000 in the new regime (₹15,000 old), or one-third of the pension, whichever is lower.
You can't claim it against business or professional income, or against rent or capital gains — it's specifically a relief on salary and pension.
The one deduction the new regime keeps
When people say the new regime “has no deductions,” that's not quite true. Most go — but the standard deduction stays, and it's actually larger there.
Old-regime deductions
80C, HRA, 80D and the rest — available only if you choose the old regime.
Standard deduction
Available in both regimes, and you don't lift a finger — it's applied automatically.
So even if you go with the new regime for its lower rates, you don't lose the standard deduction — you get the bigger ₹75,000 version.
The standard deduction is just the start
Everyone gets it — so the real question is whether your other deductions make the old regime worth it, or whether the new regime's lower rates win outright. The only way to know is to run your own numbers.
Let a CA file your salary return
The standard deduction is automatic — but choosing the right regime, claiming every other deduction and matching your Form 16 to the portal is where it pays to have an expert. Send your details on WhatsApp and a Chartered Accountant files an accurate, optimised return.
File my ITR with a CAStandard deduction — FAQs
What is the standard deduction?
It's a flat deduction from salary or pension income, allowed without any bills or proof. For FY 2025-26 it's ₹75,000 in the new regime and ₹50,000 in the old regime.
Is the standard deduction available in the new regime?
Yes. It's one of the few deductions that applies in the new regime — and at ₹75,000, it's actually higher there than the ₹50,000 allowed in the old regime.
How does it make ₹12.75 lakh tax-free?
In the new regime, income up to ₹12 lakh is effectively tax-free after the Section 87A rebate. The ₹75,000 standard deduction sits on top, so a salary up to ₹12.75 lakh ends with nil tax.
Do I need to submit any proof to claim it?
No. The standard deduction needs no investment, no spending and no documents — it's applied as a flat amount when you file.
Can pensioners claim the standard deduction?
Yes. Pension from a former employer is taxed as salary, so pensioners get the same standard deduction. Family pension has its own separate, smaller deduction.
Can I claim it against business income?
No. The standard deduction applies only to salary and pension — not to business or professional income, rent, or capital gains.
File your salary return the smart way
The standard deduction is the easy part. Send your Form 16 on WhatsApp and a Chartered Accountant picks the cheaper regime, claims everything you're entitled to, and files an accurate return — well before the deadline.
File my ITR nowThis explainer on the standard deduction is for AY 2026-27 (FY 2025-26) and is for general information only — not tax, legal or financial advice. Amounts and rules are governed by the Income-tax Act and may change. Confirm the current position, or consult a Chartered Accountant, before filing.