Standard Deduction Calculator
Calculate your flat tax deduction available for salaried individuals and pensioners under both Old and New Tax Regimes.
Income Details
What is Standard Deduction?
It is a flat deduction from your gross salary income, introduced to replace the earlier transport allowance and medical reimbursement. You don't need to provide any bills or proof to claim it.
Taxable Salary Comparison
Budget 2024 Update
The standard deduction for salaried employees and pensioners under the New Tax Regime has been increased from ₹50,000 to ₹75,000 for FY 2024-25. This move is aimed at providing more relief to the middle class.
Standard Deduction Guide
Standard deduction is a fixed amount that is deducted from your total salary income before calculating your taxable income. It was reintroduced in the 2018 Union Budget to simplify the tax process.
Who can claim it?
- Salaried Employees: All individuals receiving a salary from an employer.
- Pensioners: Individuals receiving pension from their former employer.
Regime-wise Limits (FY 2024-25)
Key Points to Remember
- It is available for each financial year.
- If your total salary is less than the limit, the deduction is restricted to the actual salary amount.
- It is not available for income from Business, Profession, or House Property.
Frequently Asked Questions
Do I need to submit any bills to claim standard deduction?
No, standard deduction is a flat deduction. You do not need to submit any medical bills, travel receipts, or any other proof to your employer or the tax department.
Is standard deduction available for family pension?
Yes, standard deduction is available for family pension as well, but the rules are slightly different under Section 57. However, for regular salary/pension, the limits mentioned above apply.
Can I claim standard deduction if I have multiple employers?
No, you can only claim the standard deduction once in a financial year, regardless of how many employers you had during that year.
Is it available for the New Tax Regime?
Yes, standard deduction was introduced for the New Tax Regime in Budget 2023 and further increased in Budget 2024 to ₹75,000.