Standard Deduction on Salary: Latest Updates for FY 2024-25

| Last updated: 13 January 2026

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The standard deduction for salaried individuals and pensioners has been increased to Rs 75,000 under the new tax regime for FY 2024-25. This deduction is automatically applied to your gross salary or pension income, reducing your taxable income without requiring any proof of expenses. It is available to individuals receiving salary and pension, but not to business owners, freelancers, or those with income solely from other sources.

Union Finance Minister Smt Nirmala Sitharaman on July 23rd, 2024 under new tax regime, hiked the standard deduction to Rs. 75,000 from the current Rs. 50,000. Salaried employees will now stand to save Rs. 17500 in income tax. Applicability Standard Deductions is a fixed deduction allow

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About the Author

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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