Yes, a standard deduction of Rs. 75,000 is available to a tax payer in the new regime. Therefore, a salaried tax payer will not be required to pay any tax where his income before standard deduction is less than or equal to Rs.12,75,000. However, salaried taxpayers should remember that if the total contribution made to NPS, EPF and superannuation fund by an employer exceeds Rs.7.5 lakh in a financial year, then the excess contribution will be taxable in the hands of an employee. Further, interest or any return earned on the excess contribution will be taxable as well.
