Module: General Practice
Q9: In the Union Budget 2026-27, the limit for Standard Deduction for salaried employees under the New Income Tax Regime has been increased to which amount?
✅ Correct Answer: C
The Standard Deduction has been raised to Rupees 1,00,000.
To further incentivize the shift to the New Tax Regime Slabs, the Finance Minister proposed increasing the Standard Deduction from the previous Rupees 75,000.
This change in the Union Budget 2026-27 implies that salaried individuals with an income up to Rupees 8.5 Lakh will effectively pay zero tax due to the Rebate under section 87A.
To further incentivize the shift to the New Tax Regime Slabs, the Finance Minister proposed increasing the Standard Deduction from the previous Rupees 75,000.
This change in the Union Budget 2026-27 implies that salaried individuals with an income up to Rupees 8.5 Lakh will effectively pay zero tax due to the Rebate under section 87A.