Standard deduction u/s 16(ia) - Income Tax - Ready Reckoner - Income Tax

Benefit of Standard Deduction is only for Salaried Individuals [ Section 16(ia) ] Deduction u/s 16(ia) states that a tax payer having income chargeable under the head 'Salaries' shall be allowed a deduction of ₹ 50,000 or the amount of salary, whichever is less, for computing his total income. Now all employees will get a standard deduction of ₹ 50,000 p.a. In a case where income-tax is computed under section 115BAC(1A)(ii), the provisions of this clause shall have effect as if for the words ₹ 50,000 , the words ₹ 75,000 had been substituted;. [ Inserted vide Finance (No.2) Act, 2024 ] In other words [ w.e.f. 01.04.2025 ] If an individual person have a salary income, they are eligible for standard deduction If tax is payable under the Old Regime , the standard deduction would be ₹50,000. If tax is payable under the New regime then standard deduction would be 75,000/-