Standard Deduction  

Standard Deduction is a fixed amount that can be deducted from the total taxable income. Salaried employees, pensioners, and retired individuals can claim this deduction.

In addition to the changes in tax slabs, the family pension deduction has also been increased to Rs 25,000 from the previous Rs 15,000. The new changes will benefit over 4 crore salaried folks and pensioners. 

The government offers taxpayers a choice between the traditional old regime, which includes numerous deductions and exemptions, and the new regime with simplified structures and lower tax rates.

After the announcements in Budget 2019, an individual earning up to Rs 7.85 lakh per year can end up not paying any tax, provided he invests in various instruments. He can save a tax of Rs 15,080.