Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningA flat deduction from salary income without proof of expenses.
Relevant ActIncome-tax Act, 1961
Section / ruleSection 16(ia)
Technical meaning
A deduction from salary income of a fixed amount or the salary, whichever is lower: Rs 75,000 under the new regime (from FY 2024-25) and Rs 50,000 under the old regime.
Practical example
Salary of Rs 10,00,000 becomes Rs 9,25,000 after the new-regime standard deduction.
Related terms
Official reference
Income-tax Act, 1961, Section 16(ia)
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