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Standard Deduction Calculator FY 2025-26
The Standard Deduction Calculator helps you determine how much income can be reduced before tax is calculated under the New and Old Tax Regime for FY 2025-26.
It shows:
- Eligible standard deduction amount
- Professional tax deduction (Old Regime)
- Total deduction
- Revised taxable income
- Estimated tax saved based on your slab
This tool is built for quick clarity and planning accuracy.
What Is Standard Deduction?
Standard deduction is a flat deduction allowed from salary or pension income before calculating taxable income.
You do not need to submit investment proofs to claim it.
Standard Deduction for FY 2025-26
- New Tax Regime: ₹75,000
- Old Tax Regime: ₹50,000
The deduction is limited to your gross income. If your salary is lower than the limit, you can claim only up to the income amount.
Who Is Eligible for Standard Deduction?
Salary Income
Salaried individuals can claim standard deduction under both tax regimes.
Pension Income
Pensioners receiving taxable pension income can also claim standard deduction.
Residential Status
Standard deduction is generally available to Resident individuals. Non-Resident treatment may differ depending on tax provisions and DTAA rules.
What This Calculator Helps You Understand
Most people search for:
- How much is standard deduction in new tax regime?
- Is professional tax deductible in old regime?
- What is my taxable income after standard deduction?
- How much tax do I save because of standard deduction?
This calculator answers all these questions instantly.
Standard Deduction Under New vs Old Regime
New Tax Regime
- Standard Deduction: ₹75,000
- No professional tax deduction allowed
- Simplified structure with lower slab rates
Best suited for individuals not claiming multiple exemptions.
Old Tax Regime
- Standard Deduction: ₹50,000
- Professional Tax deduction allowed up to ₹2,500
- Allows multiple deductions under sections like 80C, 80D, HRA etc.
Best suited for individuals claiming multiple exemptions and deductions.
Professional Tax Deduction (Old Regime Only)
If you opt for the Old Regime, you can claim deduction for professional tax paid.
Maximum limit allowed: ₹2,500 per year.
This calculator automatically:
- Applies professional tax only under Old Regime
- Caps deduction at ₹2,500
- Recalculates taxable income accordingly
How Standard Deduction Reduces Taxable Income
Taxable Income = Gross Income − Total Deductions
Where:
Total Deductions = Standard Deduction + Professional Tax (if applicable)
Estimated Tax Saved = Total Deduction × Marginal Tax Rate
This gives you a realistic idea of how much tax is saved because of the deduction.
Example
Suppose your annual gross income is ₹7,50,000 under the New Regime.
- Standard Deduction: ₹75,000
- Taxable Income becomes: ₹6,75,000
If your marginal slab rate is 10%,
Estimated tax saved = ₹7,500.
Under Old Regime with ₹2,400 professional tax:
- Standard Deduction: ₹50,000
- Professional Tax: ₹2,400
- Total Deduction: ₹52,400
- Taxable Income: ₹6,97,600
This shows how regime choice changes outcome.
How to Use the Standard Deduction Calculator
- Enter your annual gross income
- Select income type: Salary or Pension
- Choose tax regime (New or Old)
- Select residential status
- Enter professional tax paid (Old Regime only)
- Click Calculate
The tool shows:
- Total deduction
- Taxable income
- Estimated tax saved
- Complete calculation breakdown
You can download the result or share your plan.
When Should You Compare New vs Old Regime?
You should compare both regimes if:
- Your income is above ₹7 lakh
- You claim HRA, 80C, 80D or home loan deductions
- You pay professional tax
- You want to minimise taxable income
This calculator helps you quickly see which regime gives better benefit.
Who Should Use This Calculator
- Salaried individuals comparing tax regimes
- Pensioners calculating taxable income
- Employees paying professional tax
- Individuals planning regime switch
- Tax planners estimating slab impact
Why This Calculator Is Useful
- Supports both New and Old Regime
- Applies correct deduction limits
- Includes professional tax cap logic
- Calculates estimated tax savings
- Shows full breakdown clearly
- Share and download options available
Frequently Asked Questions
₹75,000 under New Regime and ₹50,000 under Old Regime.
Yes. Standard deduction of ₹75,000 is available under the New Regime for FY 2025-26.
No. Professional tax deduction is allowed only under the Old Tax Regime.
Yes. Pension income qualifies for standard deduction similar to salary income.
Eligibility may differ based on tax provisions. This calculator assumes resident treatment for standard deduction benefits.
No. It reduces taxable income. The actual tax saved depends on your marginal tax slab.
Yes. Employers usually consider it while calculating TDS, but it is still part of your income tax computation.