# Standard Deduction for FY 2024–25: What Every Salaried Taxpayer Should Know

When it comes to filing income tax returns, few provisions are as straightforward and beneficial as the standard deduction. For the vast majority of salaried individuals and pensioners in India, it acts as a flat, no-questions-asked tax relief—lowering taxable income without the hassle of collecting bills or submitting proofs.

What Exactly Is the Standard Deduction?

Think of the standard deduction as an automatic rebate. Instead of tracking specific expenses like travel or medical bills, the government allows you to deduct a fixed sum from your income—₹50,000 under the old regime and ₹75,000 under the new regime (as per Budget 2024). It’s a way to ease compliance and offer blanket relief across income levels, especially the middle class.

Reintroduced in 2018, the idea behind this benefit is clear: reduce paperwork and offer fair, equal relief, regardless of whether you're in the private sector, a government employee, or a pensioner.

Who Can Claim It and How Much?

Here’s how the standard deduction applies for FY 2024–25 (AY 2025–26):

Category	Old Tax Regime	New Tax Regime
Salaried Individuals	₹50,000	₹75,000
Pensioners	₹50,000	₹75,000
Family Pensioners*	Not Applicable	₹25,000

*Note: Family pensioners (typically legal heirs receiving a pension) were earlier eligible for ₹15,000. This was increased to ₹25,000 in the new regime as per the recent Budget announcement.

What Makes It So Useful?

• No bills. No hassle. Unlike HRA or medical reimbursements, you don’t need to submit any proof to claim this.
• Applies automatically. If you're earning a salary or drawing a pension, the deduction is built into your ITR computation.
• Universal access. It doesn't matter if you've switched jobs or if you're employed by the government, a private company, or even retired. If you have income under the “salary” head, this benefit is yours.

Who’s Not Eligible?

This deduction does not apply to:

• Freelancers or gig workers
• Consultants or business owners
• Anyone earning solely from business or professional income

Simply put, if your income doesn’t fall under the “salary” or “pension” category, this isn’t a benefit you can claim.

Why the Standard Deduction Still Matters

Even though it's a fixed figure, this deduction directly reduces your taxable income, and by extension, your tax liability. It’s one of the few straightforward benefits that hasn’t been cluttered with conditions over time. In fact, it replaced earlier allowances for transport and medical expenses, offering a single, cleaner deduction.

Whether you're using the old regime with multiple exemptions or opting for the new regime with its lower slab rates and fewer deductions, the standard deduction still finds a place in both.

Some Common Questions—Answered

1. Has the amount changed over the years? Yes. It was ₹40,000 when reintroduced in FY 2018-19, increased to ₹50,000 in FY 2019-20, and now raised to ₹75,000 in the new tax regime starting FY 2024-25.

2. Can I claim this if I changed jobs during the year? Absolutely. The deduction applies across your total salary for the financial year, even if you worked with multiple employers.

3. What about pensioners—do they qualify? Yes. If you receive a pension from your former employer, you’re eligible for the standard deduction—either up to the cap or the actual pension amount, whichever is lower.

4. And family pensioners? They can claim ₹25,000 under the new regime only. Earlier, this was capped at ₹15,000.

5. Do I need to show any paperwork to claim this? Not at all. But keeping your Form 16, salary slips, and Form 26AS is still a good idea for cross-checking when filing your return.

A Quick Recap

Who	How Much	Conditions
Salaried Individual	₹50,000 (old) / ₹75,000 (new)	Must have salary income
Pensioner	₹50,000 (old) / ₹75,000 (new)	Must have pension from ex-employer
Family Pensioner	₹25,000 (new)	Family pension only

Final Word

For anyone earning a salary or drawing a pension, the standard deduction remains one of the cleanest, most reliable ways to reduce your tax bill. It’s simple, automatic, and available regardless of whether you choose the old or new tax regime.