Amounts and how they apply
| New regime | Old regime | |
|---|---|---|
| Amount | ₹75,000 | ₹50,000 |
| Income base | Salary and pension | Salary and pension |
| Capped at salary income | Yes | Yes |
| Pensioner | Yes | Yes |
| Freelancer / business income | N/A | N/A |
The deduction reduces the salary head: salary after exemptions, less the standard deduction (never below zero), helps form gross total income. It comes before Chapter VI-A deductions, so both regimes start their taxable-income arithmetic from their own amount.
Worked arithmetic
| Gross salary | New regime salary income | Old regime salary income |
|---|---|---|
| ₹5,00,000 | ₹4,25,000 (−₹75,000) | ₹4,50,000 (−₹50,000) |
| ₹12,00,000 | ₹11,25,000 (−₹75,000) | ₹11,50,000 (−₹50,000) |
| ₹30,00,000 | ₹29,25,000 (−₹75,000) | ₹29,50,000 (−₹50,000) |
Frequently asked questions
What is the standard deduction for FY 2026-27?
₹75,000 in the new regime and ₹50,000 in the old regime, deducted from salary (including pension) income before the slab tax is computed.
Who qualifies?
Any taxpayer with salary or pension income. The deduction is not an input in the calculator — it is a computed line, capped at the salary after exemptions, and never applied to other income.
Can I claim it twice with two employers?
No. When two employers each deduct TDS in a year, the standard deduction belongs once against the total salary income, not once per employer. Model that case in the calculator by adding both salaries into one gross; the two-employer workflow is a planned phase-2 feature.
Does the standard deduction apply to freelance income?
No. Business or professional income has expense-based deductions instead, and this calculator does not cover that head. For 'other' income types the tool applies no standard deduction and says so.
Why is the new-regime deduction bigger?
It is how section 115BAC compensates for losing HRA, 80C and the rest of the old-regime deduction set.