The standard deduction for the year you select, and what it saves at your marginal rate. It is flat, needs no receipts, and is the deduction most salaried filers rely on entirely.
Also called: section 16 deduction, salary standard deduction, irs standard deduction.
₹13,25,000 taxable, after a standard deduction of ₹75,000—. The deduction saves ₹22,500 at your marginal rate of 30%. The new regime has the larger standard deduction but does not allow professional tax as a deduction.
Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
The standard deduction is a flat amount subtracted from income with no proof of any expenditure required, which is why the great majority of salaried filers take it rather than itemising. What it is worth depends on where you are. In India it is set under section 16(ia) and differs between the two regimes, and professional tax paid is separately deductible under the old one. In the United States it is set under section 63(c), depends on filing status, is indexed to inflation every year, and is larger if you are 65 or older or blind. Either way the saving is the deduction times your marginal rate, not the deduction itself, which is the part most people overestimate.
a flat deduction requiring no proof and no expenditure, set by statute and indexedEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Salary after deductions₹13,25,000
FY 2026-27 ruleset: the new-regime section 16(ia) deduction is 75,000, so 14,00,000 less that is 13,25,000, and at a 30% marginal rate the deduction is worth 22,500.
Open this exampleSalary after deductions₹13,47,500
boundary: the old regime deducts 50,000 plus the 2,500 of professional tax, so 13,47,500. The larger new-regime deduction is worth more than the professional tax it gives up.
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator