What is Standard Deduction?
The standard deduction is a flat amount subtracted from a salaried employee's or pensioner's gross salary before computing taxable income, with no bills or proof required. For FY 2026-27, it is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime.
It applies automatically to salary and pension income only — it does not apply to income from business, profession, or capital gains.
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