Standard Deduction — Amount & Eligibility
Updated June 2026 · VerifiedWhat Is the Standard Deduction Amount for Tax Year 2026-27?
| Tax Regime | Standard Deduction Amount | Applicable To |
|---|---|---|
| New Regime (default) | ₹75,000 | Salaried employees & pensioners |
| Old Regime | ₹50,000 | Salaried employees & pensioners |
Who Is Eligible for the Standard Deduction?
The standard deduction is available to:
- Salaried employees — all individuals receiving salary income, regardless of the salary amount.
- Pensioners — receiving family pension or pension from a former employer. Family pensioners get a deduction of ₹25,000 (or one-third of pension, whichever is lower) under the old regime.
The standard deduction is not available to:
- Self-employed professionals and freelancers (no salary/pension income).
- Individuals earning only business income.
- Taxpayers with income solely from capital gains, house property, or other sources.
What Does the Standard Deduction Replace?
The standard deduction was reintroduced in Budget 2018 as a replacement for two previously available exemptions:
- Transport Allowance — ₹19,200 per year (₹1,600/month) that salaried employees could claim for commuting.
- Medical Reimbursement — ₹15,000 per year that employees could claim with medical bills.
The combined value of these exemptions (₹34,200) was lower than the standard deduction, making the switch beneficial. Additionally, the standard deduction requires no bills or documentation.
How Does Standard Deduction Work in Each Regime?
New Regime (Default)
Under the new tax regime of the Income-tax Act, 2025, salaried taxpayers get a flat ₹75,000 standard deduction. This is the only major deduction available in the new regime (besides employer NPS contribution up to 14% of salary). Other deductions like 80C, 80D, HRA, and LTA are not available.
Old Regime
Under the old regime, the standard deduction is ₹50,000. However, salaried taxpayers in the old regime can also claim multiple other deductions — 80C (up to ₹1.5 lakh), 80D (health insurance), HRA, LTA, home loan interest, and more. The total deduction package under the old regime can be significantly higher.
How to Claim the Standard Deduction?
No separate claim is needed. The standard deduction is:
- Automatically applied by your employer in Form 16 Part B while computing taxable salary.
- Automatically deducted when you enter salary details in the ITR form on the e-filing portal.
- Applied at the individual level — if both spouses are salaried, each can claim the full standard deduction separately.
Standard Deduction — Historical Amounts
| Period | Amount (Old Regime) | Amount (New Regime) |
|---|---|---|
| FY 2018-19 to FY 2018-19 | ₹40,000 | N/A |
| FY 2019-20 to FY 2024-25 | ₹50,000 | ₹50,000 (from FY 2023-24) |
| Tax Year 2025-26 onwards | ₹50,000 | ₹75,000 |
Frequently Asked Questions
Is the standard deduction available under both old and new tax regimes?
Yes. The standard deduction is available under both regimes for Tax Year 2026-27. It is ₹75,000 under the new regime and ₹50,000 under the old regime for salaried individuals and pensioners.
Can a freelancer or self-employed person claim the standard deduction?
No. The standard deduction is exclusively for taxpayers with salary or pension income. Freelancers and self-employed individuals can deduct business expenses under Section 44AD/44ADA or through regular books of accounts instead.
Do I need to submit bills or proof to claim the standard deduction?
No. The standard deduction is a flat, no-questions-asked deduction. You do not need to submit any bills, receipts, or proof of expenditure. It is automatically applied in your Form 16 and ITR computation.
Is the standard deduction per person or per employer?
The standard deduction is per person, not per employer. If you switch jobs during the year, the total standard deduction remains ₹75,000 (new regime) or ₹50,000 (old regime). You cannot claim it twice.
Does family pension get the same standard deduction as salary?
Not exactly. Family pension (received by a family member of a deceased employee) gets a deduction of ₹25,000 or one-third of the pension, whichever is lower, under the old regime. Under the new regime, family pensioners get the standard ₹75,000 deduction. Regular pension from a former employer gets the full standard deduction under both regimes.
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