Standard Deduction
Definition
A flat deduction of ₹75,000 from salary/pension income for salaried individuals and pensioners, available under the New Tax Regime (AY 2024-25 onwards). Also ₹50,000 under the Old Tax Regime.
In Context
Under the New Tax Regime: ₹75,000 standard deduction for salaried and pensioners. Under the Old Tax Regime: ₹50,000. No itemized deductions (80C, 80D, etc.) are allowed under the New Regime apart from this. Self-employed and business owners do NOT get standard deduction.
Related Terms
Want this in plain language?
Ask Kuber.AI to explain how Standard Deduction works, in the language you think in.
Download Kuber.AI
⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.