Is standard deduction applicable for all salaried and pensioners irrespective of their tax slab under new tax regime or it is available for more than 15.5 lacs?
Ans: Under the new tax regime, standard deduction is available for all salaried individuals and pensioners, irrespective of their tax slab. The standard deduction amount for the financial year 2022-23 is Rs. 50,000. However, if an individual opts for the new tax regime, they will have to forgo various exemptions and deductions including the standard deduction, and will have to pay tax at a lower rate without claiming these exemptions and deductions. It is recommended that you compare the tax liability under both old and new tax regimes before making a decision.
