How Standard Deduction works
For the new tax regime in 2025-26, the standard deduction is ₹75,000, subtracted straight from your gross salary to arrive at taxable income. It replaces a set of small allowances with one simple flat figure and needs no documentation.
Why Standard Deduction matters
The standard deduction lowers everyone's taxable salary automatically, and combined with the rebate it keeps many mid-salary earners at zero tax under the new regime.
The same benefit in both regimes
The standard deduction exists under both tax systems, but the amount differs: ₹75,000 under the new regime for 2025-26 and ₹50,000 under the old regime. It is one of the few benefits the new regime keeps, alongside the employer's provident-fund contribution, which is part of why the new regime can leave many salaried workers with little or no tax up to about ₹12,00,000 of income. Because it applies automatically, you never claim it or prove it; the employer simply factors it into your monthly TDS, so it quietly raises your in-hand pay.
Frequently asked questions
Is the standard deduction available in both regimes?
Yes, though the amount differs. Under the new regime for 2025-26 it is ₹75,000; under the old regime it is ₹50,000.
Do I need proof for the standard deduction?
No. It is a flat deduction given automatically to salaried taxpayers with no documents required.