​​​​​The standard deduction is allowed while computing income chargeable under the head salaries. It is available to all class of employees irrespective of the nature of employer. Standard Deduction is also available to pensioners. Amount of Standard Deduction is Rs. 50,000 or amount of salary/pension, whichever is lower.

Note 1: The standard deduction under section 16(ia) is available only for Pension Chargeable under the head "Income under the head Salaries" and not for Pension chargeable under "Income from Other Sources".

Note 2: The standard deduction for employees paying tax under the new tax regime under section 115BAC(1A)(iii) is increased from Rs. 50,000 to Rs. 75,000 for Assessment Year 2025-26.