How much it is
| New regime | Old regime | |
|---|---|---|
| Salary or pension | ₹75,000 | ₹50,000 |
| Family pension (received after an employee's death) | One-third of it, up to ₹25,000 | One-third of it, up to ₹15,000 |
If your salary is less than the deduction, it's limited to your salary.
Who gets it
- Employees, in government or private jobs
- Pensioners, on pension from a former employer
- Not freelancers or consultants on their professional fees: that isn't salary.
What it saves
₹75,000 less taxable income saves ₹23,400 a year in the 30% slab, with cess. It's also why a salary of ₹12.75 lakh pays no tax under the new regime: it brings taxable income down to ₹12 lakh, which the 87A rebate covers.
Two employers in one year
You get one standard deduction for the year, not one per job. If both employers allowed it, your total TDS will be short, and you pay the difference before filing your return.
Do you need to claim it?
No proof is needed. Your employer allows it in your TDS, and it's filled in automatically in your return. Check that it's there, and that it's the right amount for the regime you choose.
Common questions
What is the standard deduction for FY 2026-27?
₹75,000 under the new regime and ₹50,000 under the old regime, for salaried people and pensioners.
Do I need proof to claim the standard deduction?
No. It's a flat deduction. Your employer allows it in TDS and it's filled in automatically in your return.
Can I claim the standard deduction twice if I changed jobs?
No. You get one standard deduction for the year, however many employers you had.
Do freelancers get the standard deduction?
No. It applies only to salary and pension, not to professional or consulting fees.
Work it out for yourself
- Salary in hand: Turn your CTC into the amount that reaches your bank.
- Income tax: old vs new: Which regime leaves more in your account.
- Pension commutation: Tax on commuted and monthly pension.
See your monthly take-home after tax.
Open the salary calculatorSources
- Tax rules for salaried individuals, AY 2026-27, Income Tax Department
This guide explains the rules in general. For your own situation, .