Standard deduction is a fixed deduction that is allowed to specific income tax assessees, irrespective of expenses incurred or investments made. Unlike other deductions and exemptions, to claim standard deduction, one need not provide any documents and proofs.
Standard deduction has been reintroduced by amending the Finance Act 2018. The deduction is available under Section 16 of the Income Tax Act, 1961. A salaried individual or pensioner can claim standard deduction up to Rs 40,000 from her income.
