The Standard Deduction: ₹75,000 or ₹50,000, and Who Can Claim It
Rohit Menon
· Founder & Product Architect· 3 min read
The standard deduction is the rare provision that requires nothing of you: no investment, no receipt, no declaration. It is also one of the few deductions the new regime retained, and at seventy-five thousand rupees it is larger there than in the old.
- ✓₹75,000 in the new regime, ₹50,000 in the old.
- ✓Available to salaried individuals and to pensioners receiving pension as salary.
- ✓No proof or declaration is required.
- ✓It cannot exceed the salary itself.
The amounts
Section 16(ia) allows a deduction from salary of fifty thousand rupees, or the amount of salary, whichever is less. For taxpayers under the new regime the Finance Act 2024 raised it to seventy-five thousand rupees.
It is a deduction from the salary head specifically, not a Chapter VI-A deduction, which is why it survived into the new regime when most others did not.
Who can claim it
Any individual with income chargeable under the head salaries, including pensioners whose pension is taxable as salary. Family pension is different — it is taxed under income from other sources and attracts its own deduction, now raised to twenty-five thousand rupees in the new regime.
It is not available against business or professional income, however that income arises.
Multiple employers
The deduction is per taxpayer, not per employer. Changing jobs during the year does not produce two standard deductions, and each employer computing it separately will understate your tax.
This is the commonest cause of a demand after a job change: both employers applied the full deduction and the aggregate TDS fell short. Reporting previous employment income to the new employer in Form 12B avoids it.
Frequently asked questions
### Is the standard deduction available in the new regime?
Yes, and at a higher figure — seventy-five thousand rupees against fifty thousand in the old regime. It is one of the few deductions the new regime retained.
### Can pensioners claim the standard deduction?
Yes, where the pension is taxable under the head salaries. Family pension is taxed under other sources and attracts a separate deduction, which the Finance Act 2024 raised to twenty-five thousand rupees under the new regime.
### Do I get two standard deductions if I change jobs?
No. It is a single deduction per taxpayer per year. If both employers applied it in full your TDS will be short, which is why previous employment income should be reported to the new employer in Form 12B.
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Frequently Asked Questions
Is the standard deduction available in the new regime?
Yes, and at a higher figure — seventy-five thousand rupees against fifty thousand in the old regime. It is one of the few deductions the new regime retained.
Can pensioners claim the standard deduction?
Yes, where the pension is taxable under the head salaries. Family pension is taxed under other sources and attracts a separate deduction, which the Finance Act 2024 raised to twenty-five thousand rupees under the new regime.
Do I get two standard deductions if I change jobs?
No. It is a single deduction per taxpayer per year. If both employers applied it in full your TDS will be short, which is why previous employment income should be reported to the new employer in Form 12B.
Rohit Menon
Founder & Product ArchitectArchitecting business document operating systems and automated billing workflows for Indian SMBs, agencies, and enterprises.