DEDUCTION definition: 1. the process of reaching a decision or answer by thinking about the known facts, or the decision…. Learn more. Standard deduction applies to income from salary and helps reduce the taxable income for individuals. For the financial year 2024-25, under the new tax regime, salaried individuals can claim a standard deduction of up to Rs 75,000. Think of deductions as discount coupons on your taxable income. You earn money, much before that the government decides how much to tax, it says: “If you spent some money on good things such as insurance, retirement, or education, we’ll let you subtract that amount from your income.”
