Standard Deduction Calculator
See your standard deduction on salary or pension u/s 16(ia) — and family-pension deduction u/s 57 — with taxable income and tax saved, live.
Deduction & taxable-income breakdown
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Disclaimer: Indicative estimate. Tax saved assumes the deduction reduces income taxed at the marginal slab shown; actual benefit depends on your full income, rebate and cess. Rates per Finance Act 2025.
Standard deduction at a glance
The standard deduction is a flat amount subtracted from salary or pension before tax — you do not need any bills or proof. From FY 2026-27 it is available in both the new and old regimes, so almost every salaried person and pensioner gets it automatically.
Standard deduction — reference table
The amount depends on whether you receive salary/pension from your own employment or a family pension (pension paid to the family of a deceased employee), and on the regime you choose.
| New regime (FY 2026-27) | ₹75,000 |
| Old regime | ₹50,000 |
| Proof required? | None |
| Applies to | Salary + pension from ex-employer |
| New regime | ₹25,000 |
| Old regime | ₹15,000 |
| Cap | Or 1/3rd of pension |
| Rule | Lower of the two applies |
Worked example
A salaried employee with a gross salary of ₹8,00,000 in FY 2026-27 under the new regime, whose top slab rate is 20%:
Key terms explained
Section 16(ia)
The clause that grants the standard deduction from salary income — ₹75,000 in the new regime and ₹50,000 in the old for FY 2026-27. Pension from a former employer is treated as salary, so pensioners get it too.
Automatic — no proof
Unlike 80C or HRA, the standard deduction needs no investment, bills or documents. The moment you have salary or pension income, the flat amount is subtracted — your employer already builds it into TDS.
Now in both regimes
Earlier the new regime salary deduction was only ₹50,000; from FY 2026-27 it is ₹75,000. The deduction is available under both the new and old regimes, so choosing the new regime no longer costs you this benefit.
Family pension u/s 57
Family pension is other-source income. Its deduction is ₹25,000 (new) / ₹15,000 (old) or one-third of the pension, whichever is lower — a separate rule from the salary standard deduction.
What is the standard deduction on salary?
A flat deduction from salary income under section 16(ia), needing no bills or proof — ₹75,000 under the new regime and ₹50,000 under the old regime. Pensioners drawing pension taxed as salary get it too.
Is standard deduction available on family pension?
Yes, but under a different provision. Family pension is taxed as income from other sources, with a deduction of one third of the pension subject to ₹25,000 under the new regime and ₹15,000 under the old.
Do I get standard deduction from more than one employer?
No. It is a single deduction against total salary income for the year, however many employers you had.
Is standard deduction available to a business owner or freelancer?
No. It applies only to income taxed under the head salaries. A business or professional claims actual expenses, or opts for the presumptive scheme.
Can standard deduction create a loss?
No. The deduction under section 16 cannot exceed the salary income, so it can reduce salary to nil but not below it.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.