A flat deduction from taxable income available to every salaried employee, with no investment proof required.
The Standard Deduction is a flat amount every salaried employee can subtract from their taxable income, and the exact figure depends on which tax regime is chosen. Under the New Tax Regime it's ₹75,000 (as of FY2026-27, unchanged from FY2025-26) — under the Old Tax Regime it remains ₹50,000. The figure is revised periodically, so it's worth checking the current limit each financial year.
Unlike most other deductions, it requires no investment declaration or supporting documents, making it the simplest way for every salaried employee to lower their tax liability regardless of which regime they choose.
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