standard deduction

Standard Deduction (Salaries) is a fixed deduction from the salary irrespective of the position held in the organization. Since a fixed amount is deducted from the annual salary, it reduces the taxable income, and hence the tax paid amount will also reduce.

A Salaried employee and a pensioner can claim Standard Deduction. An individual need not disclose any investment proofs or expense bills for this purpose, the Standard Deduction is allowed at a standard rate.