Standard Deduction and Salary Deductions (Section 19)
The standard deduction is the one salary benefit that works in both tax regimes — ₹75,000 in the new regime and ₹50,000 in the old, with no bills or proof needed. Alongside it sit the family-pension deduction, professional tax and, for government staff, the entertainment allowance. This page shows what applies to you under each regime. Stated under the Income-tax Act, 2025 (Section 19) and the Act, 1961 (Section 16).
Standard deduction — new
₹75,000
salary or pension
Standard deduction — old
₹50,000
salary or pension
Family pension — new
₹25,000
₹15,000 or 1/3 (old)
Section
19
was 16 (Act 1961)
The four salary deductions
| Deduction | Amount | Old regime | New regime |
|---|
| Standard deduction (salary / pension) | ₹50,000 (old) · ₹75,000 (new) | Yes | Yes |
| Family pension deduction | ₹15,000 or 1/3 (old) · ₹25,000 (new) | Yes | Yes |
| Professional tax paid | Actual (state cap, up to about ₹2,500) | Yes | No |
| Entertainment allowance (govt staff) | Least of ₹5,000 / 20% of basic / actual | Yes | No |
The standard deduction needs no proof and is given automatically once you have salary or pension income. The family-pension deduction applies where you receive a pension on the death of the earning member. Professional tax is deductible only if your state levies it and you actually paid it. Entertainment allowance is a narrow benefit available only to government employees.
Old Act 1961 vs new Act 2025 — numbering
Income-tax Act, 1961
- Standard deduction: Section 16(ia)
- Entertainment allowance: Section 16(ii)
- Professional tax: Section 16(iii)
- Family pension: Section 57(iia)
Income-tax Act, 2025
- Standard deduction and the Section 16 items: Section 19
- Amounts unchanged — ₹75,000 / ₹50,000
- Family pension deduction renumbered under other-sources
- Applies from Tax Year 2026-27 (1 April 2026)
Section numbers reflect the Income-tax Act, 2025 in force from 1 April 2026. The ₹75,000 / ₹50,000 standard deduction, the family-pension amounts and the regime treatment carry forward from Section 16. Confirm the live reference on the income-tax portal before filing.
Related tools and guides
Frequently asked questions
Does the standard deduction apply in the new regime?
Yes. The standard deduction is one of the few salary benefits that works in both regimes. It is ₹75,000 in the new (default) regime and ₹50,000 in the old regime, for anyone with salary or pension income, and needs no proof or documentation.
Can a pensioner claim the standard deduction?
Yes. Pension received from a former employer is taxed as salary, so a pensioner gets the same standard deduction — ₹75,000 (new) or ₹50,000 (old). Family pension, received by dependants after the pensioner’s death, is taxed under other sources and gets a separate deduction of ₹25,000 (new) or ₹15,000 / one-third (old) instead.
Is professional tax deductible in the new regime?
No. The deduction for professional tax (employment tax) paid to a state is available only in the old regime. The same applies to the entertainment allowance for government employees. Only the standard deduction and the family-pension deduction survive in the new regime.
Do the amounts change under the Income-tax Act, 2025?
No. From Tax Year 2026-27 the Section 16 salary deductions move to Section 19, but the ₹75,000 / ₹50,000 standard deduction and the other amounts are unchanged.
This page is a general guide for individual taxpayers and is not tax advice. Amounts and eligibility depend on your specific facts. Section references to the Income-tax Act, 2025 (Section 19) apply from Tax Year 2026-27 (FY 2026-27); the Income-tax Act, 1961 (Section 16) applies for FY 2025-26 and earlier. Verify the current position on the income-tax portal or with your advisor before filing.
