Senior citizen tax relief: How standard deduction applies to pension below ₹75,000 or ₹50,000

Salaried taxpayers are allowed to claim a standard deduction of ₹75,000 under the new tax regime and ₹50,000 under the old tax regime. This benefit is also available to senior and super senior citizen pensioners receiving a pension from their employers.

However, there is one condition under which the full standard deduction of either ₹75,000 under the new regime or ₹50,000 under the old regime can not apply. This is when the pension amount is less than ₹75,000 under the new regime or ₹50,000 under the old regime. So, what happens to the standard deduction in this case? You may ask.

According to the Income Tax Department, if the pension is less than ₹75,000 under the new regime or ₹50,000 under the old regime, then the deduction is limited to the amount of the pension received.

Here's what the Income Tax Department says about the standard deduction for senior and super senior citizens:

Senior citizens and super senior citizens who are in receipt of pension income from his former employer can claim a reduction as follows:

• up to ₹75,000 against such income under the new tax regime (AY 2025-26 onwards)

• up to ₹50,000 against such income under old tax regime.

"If pension is less than ₹75,000 (New Tax Regime)/50,000 (old tax regime), the deduction will be limited to the amount of pension received."

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