Explore Standard Deduction under Section 16ia and in the New Tax Regime

Know Standard Deduction in New & Old Tax Regimes: Applicability and Benefits

Standard deduction was first introduced in the year 1974 under Section 16 of the Income Tax Act 1961. The Indian Taxation System allows a flat deduction to salaried employees and pensioners. Standard deduction was available to taxpayers till FY 2004-05 and was part of the Income-tax Act 1961. At that time, a salaried individual could claim standard deduction from their salary income.

The standard deduction is a flat deduction of Rs 50,000- from your income that is taxable under the head salaries. Additionally, taxpayers need not submit any proofs or documentation to claim this deduction.

Am I eligible for Rs 50,000 standard deduction in the new tax regime?

Yes, Standard deduction of Rs 50,000 or the amount of salary, whichever is lower, is available for individuals who have opted for the new tax regime.