Standard Deduction 2026 - Rs 75,000 New Regime + Rs 50,000 Old Regime (Salaried + Pensioner Guide)

Standard Deduction 2026 - Rs 75,000 New Regime Complete Guide

Bhaiyon, Standard Deduction salaried employees + pensioners ka automatic tax saver hai under Section 16(ia) Income Tax Act. Kuch kar nahi karna padta - income tax department khud apply kar deta hai. Rs 75,000 new regime me + Rs 50,000 old regime me flat deduction. Plus Family Pensioner Rs 25,000 (Budget 2025 me Rs 15K se Rs 25K kiya). Salaried Rs 12.75 lakh tak ZERO tax achieve karta hai (Rs 12L slab + Rs 75K standard deduction + Section 87A rebate). No documents, no proof, no investment - bilkul automatic. Multiple employers ho to bhi Rs 75K cap pura financial year ke liye. Self-employed/business income wale eligible NAHI - sirf salaried + pensioners. Ye guide tumhe complete eligibility + calculation + multiple employers + family pensioner rules + comparison dega.

Best part: Standard deduction claim karne ke liye kuch documents bhi nahi maang sakta employer/AO - Rs 75K direct minus from gross salary, automatic.

Standard Deduction 2026 - Quick Info

Who Can Claim Standard Deduction?

✅ Eligible

• Salaried Employees (private + government)
• Pensioners (retired employees receiving pension)
• Family Pensioners (spouse/family receiving deceased's pension) - Rs 25K cap

❌ NOT Eligible

• Self-Employed (consultants, freelancers without HRA salary)
• Business Income (proprietorship, partnership profits)
• Professional Income (doctors, lawyers, architects with own practice)
• Capital Gains income only
• Rental income only earners

Standard Deduction by Regime (Comparison)

Choose new regime if income is high + low investments. Choose old regime if you have Rs 4L+ deductions to claim.

How Standard Deduction Helps - Calculation Examples

Example 1: Rs 10 Lakh Salary (New Regime)

• Gross Salary: Rs 10,00,000
• Less Standard Deduction: Rs 75,000
• Taxable Income: Rs 9,25,000

Without standard deduction: Tax would be ~Rs 40,000 - Rs 75K saves ~Rs 7,500 actual.

Example 2: Rs 18 Lakh Salary (Standard Deduction Impact)

• Gross: Rs 18,00,000
• With Rs 75K standard deduction: Taxable = Rs 17,25,000 → Tax Rs 1,45,000 + 4% cess = Rs 1,50,800
• Without standard deduction: Taxable = Rs 18,00,000 → Tax Rs 1,60,000 + cess = Rs 1,66,400
• Savings: Rs 15,600/year (effective Rs 75K × 20.8% combined slab impact)

Example 3: Family Pensioner Rs 5 Lakh

• Family pension received: Rs 5,00,000
• Less Standard Deduction (Family Pensioner): Rs 25,000
• Taxable: Rs 4,75,000
• New regime: Rs 0-4L NIL + Rs 4-4.75L @ 5% = Rs 3,750 → Section 87A rebate = ZERO tax

Multiple Employers - Single Rs 75K Cap

Common scenario: Job switch mid-year with 2 different employers in same FY.

Rule: Standard deduction = Rs 75,000 per FY total (NOT per employer).

Example:

• Apr-Sep with Company A: Rs 5L salary received
• Oct-Mar with Company B: Rs 7L salary received
• Total gross: Rs 12L
• Standard deduction: Rs 75,000 (single cap, NOT Rs 1.5L)
• Both employers may erroneously deduct Rs 75K each in their TDS calculation
• You correct via ITR at year-end - claim only Rs 75K, refund balance TDS

Best practice: Disclose previous employer's salary to new employer (Form 12B) so they consolidate properly.

Standard Deduction vs Other Deductions

Standard deduction = ZERO effort tax saving. Doesn't require investment, receipts, or planning.

Standard Deduction History (FY-Wise Progression)

Standard deduction replaced earlier transport allowance Rs 19,200 + medical reimbursement Rs 15,000 in 2018. Modi government's middle-class tax simplification move.

How to Verify Standard Deduction in Form 16

After receiving Form 16 Part B from employer:

1. Look for line "Less: Standard Deduction under Section 16(ia)"
2. Should show Rs 75,000 (new regime) or Rs 50,000 (old regime)
3. Family pensioner: Look for Rs 25,000 family pension deduction
4. If amount missing/wrong → contact HR/Payroll for correction
5. ITR auto-populates this from Form 16 - verify before submitting

Section 16 - Other Salary Deductions

Beyond Standard Deduction (16(ia)), Section 16 provides:

• Section 16(ii): Entertainment allowance (govt employees only) - lower of (Rs 5,000 / 1/5 of salary / actual)
• Section 16(iii): Professional Tax (state-imposed) - actual amount paid (max Rs 2,500/year)

Both available in OLD regime only - new regime me only Rs 75K standard deduction milta hai.

Standard Deduction 2026 FAQs

Q: Standard Deduction kya hai - kaise milta hai? A: Section 16(ia) ke under flat deduction - Rs 75,000 (new regime) OR Rs 50,000 (old regime) salary se automatic minus ho jata hai. Koi document, proof, investment zaroori NAHI. Pure salary se Rs 75K kam karke baki amount pe tax lagta hai.

Q: New regime me 80C nahi milta - to standard deduction milega? A: HAAN - Standard Deduction DONO regime me available hai (75K new / 50K old). Sirf 80C, 80D, HRA etc. hi new regime me block hain.

Q: Self-employed ko milega? A: NAHI - Section 16(ia) sirf salaried + pensioner ke liye hai. Self-employed/freelancer ke liye Section 44ADA presumptive taxation alternate hai (50% income deemed expenses).

Q: Multiple employers - 2x Rs 75K milega? A: NAHI - Standard deduction Rs 75K total per FY, employers ki sankhya se matlab nahi. Both employers Rs 75K dene se TDS galat ho jata hai - ITR me correct karke refund mil jata hai.

Q: Family pensioner Rs 25K kya hai? A: Budget 2025 me NEW - family pension paaane wale (deceased ka pension le rahe spouse/dependents) ko Rs 25,000 standard deduction (was Rs 15,000). New regime + old regime dono me available.

Q: Pensioner + salary dono income hai - dono pe Rs 75K milega? A: NAHI - Pension bhi salary head me classify hota hai. Single Rs 75K cap dono income combined ke liye. Senior citizen pensioners ko same Rs 75K (NOT extra).

Related Tax Guides

• Section 87A Rebate FY 2025-26 (Rs 60,000) - With Rs 75K Std Ded = Rs 12.75 lakh tax-free for salaried in NEW regime
• Income Tax Slab Rates 2026 (FY 2025-26) - Rs 12L tax-free new regime
• New vs Old Tax Regime Calculator - Regime decision
• Section 80C Tax Saving Guide 2026 - Rs 1.5L investment deduction
• Section 80E Education Loan Tax - Unlimited interest
• HRA Tax Exemption 2026 - 8 Metros - Section 10(13A)
• Section 24(b) Home Loan Interest - Rs 2L self-occupied
• ITR Filing Guide 2026 - Process + deadlines
• Sarkari Naukri Tax Saving Guide - Govt tips

Source: Income Tax Department + ClearTax + Tax2win + Bankbazaar + BusinessToday + Outlook Money cross-verified. Budget 2025 family pensioner Rs 25K hike confirmed. Verified 2 May 2026.

Page Last Updated: 2 May 2026