Tax PlanningPublished: 2026-09-01•5 min read
Standard Deduction for Salaried Employees FY 2026-27: Limits & Rules
Complete guide to Section 16(ia) standard deduction. Learn eligibility, proof submission requirements, and impact on monthly take-home.
By Tax & Financial Research Team•Verified for FY 2026-27
Advertisement
What is Standard Deduction?
Standard Deduction under **Section 16(ia)** of the Income Tax Act is a flat deduction available to all salaried employees and pensioners in India without requiring any bills, receipts, or investment proofs.
Standard Deduction Limits for FY 2026-27 - **New Tax Regime:** **₹75,000** (Enhanced under latest Budget) - **Old Tax Regime:** **₹50,000**
Key Benefits 1. **Zero Proofs Required:** Automatically deducted by your employer during payroll TDS computation. 2. **Available to Pensioners:** Family pensioners also receive enhanced standard deductions. 3. **Directly Reduces Taxable Gross:** Directly subtracts ₹75,000 from your gross salary before applying tax slab rates.
Related Calculators & Tools
Frequently Asked Questions
Do I need to submit bills to claim standard deduction?
No. Standard deduction is an unconditional statutory deduction applied automatically by your employer on Form 16 without any receipts.