Finance glossary

What is Standard deduction?

A flat deduction from salary or pension income that needs no proof: ₹75,000 under the new regime and ₹50,000 under the old regime.

Your employer applies the standard deduction automatically when working out TDS. With it, a salaried person under the new regime pays no tax on income up to ₹12.75 lakh in FY 2026-27.

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