Standard Deduction Calculator (FY 2024-25)
Compare standard deduction benefits under Union Budget 2024: ₹75,000 for New Tax Regime vs ₹50,000 for Old Tax Regime.
Income & Taxpayer Category
Union Budget 2024 Enhancement
For FY 2024-25 onwards, Standard Deduction under the New Tax Regime (Section 115BAC) has been increased from ₹50,000 to ₹75,000. Standard deduction under Old Tax Regime remains at ₹50,000. Family pension deduction enhanced to ₹25,000.
Side-by-Side Comparison Section 16(ia)
Calculated at 20% slab + 4% cess on additional ₹25,000 deduction.
Standard Deduction on Salary & Pension: Section 16(ia)
Standard Deduction is a flat deduction allowed from the gross salary income or pension of an individual taxpayer without requiring any investment proof, bills, or expense documentation.
Budget 2024 Key Modifications
Under Finance (No. 2) Act 2024 (effective FY 2024-25 / AY 2025-26):
Salaried / Regular Pensioners: Standard deduction increased from ₹50,000 to ₹75,000 under New Regime.
Family Pensioners: Deduction under Section 57(iia) increased from ₹15,000 to ₹25,000 (or 1/3rd of pension, whichever is less).
Zero Proof Requirement
Unlike Section 80C or 80D, standard deduction is automatically applied by employers in Form 16 and in the Income Tax e-filing portal. No receipts for transport, medical, or books need to be maintained.
Historical Progression of Standard Deduction in India
| Financial Year | Old Tax Regime | New Tax Regime (Sec 115BAC) | Family Pension Limit |
|---|---|---|---|
| FY 2024-25 (Current) | ₹50,000 | ₹75,000 (Enhanced) | ₹25,000 |
| FY 2023-24 | ₹50,000 | ₹50,000 | ₹15,000 |
| FY 2020-21 to 2022-23 | ₹50,000 | Nil (Not Allowed) | ₹15,000 |
Frequently Asked Questions
Is standard deduction available to self-employed individuals?
No. Standard deduction under Section 16(ia) is strictly available only against income chargeable under the head "Salaries" (including pensioners receiving monthly pension from former employers).
Can standard deduction exceed my total salary income?
No. Standard deduction is restricted to the actual amount of salary/pension received or ₹75,000 (₹50,000 in Old Regime), whichever is less. It cannot result in negative salary income.
Does standard deduction apply to non-resident salaried employees?
Yes. NRIs who earn salary income taxable in India are equally entitled to claim the full standard deduction of ₹75,000 / ₹50,000.