StandardDeduction
Definition
A flat deduction available to salaried employees and pensioners from their gross salary/pension income, reducing their taxable income. Under the new tax regime (from FY 2024-25), the standard deduction is Rs 75,000. Under the old tax regime, it is Rs 50,000.
Example
A salaried employee with a gross salary of Rs 10 lakh gets a standard deduction of Rs 75,000 under the new regime, reducing taxable salary to Rs 9.25 lakh.
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