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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.
Taxpayers do not need to provide proof of expenses or maintain records to claim this deduction.
Claiming the standard deduction does not affect eligibility for other tax deductions.
Taxpayers can choose between the old tax regime and the new tax regime.
In Budget 2024, the tax slabs for new tax regime have been revised.
For FY 2023-24, the standard deduction was Rs 50,000 for salaried and pensioned individuals.
During Budget 2024 presentation, it was announced that the standard deduction in the new tax regime will be increased from Rs 50,000 to Rs 75,000.
For example: if your taxable income is Rs 8,00,000, you can claim a standard deduction of Rs 75,000 under new tax regime, reducing your taxable income to Rs 7,25,000.