Standard deduction of Rs 50,000 from pension under new tax regime

Amit Kumar Das (Retd) (236 Points)

21 August 2022  

I am a senior citizen whose sources of income in FY 2021-22 are the following.

1.Pension

2. Interest from bank fixed deposits

3. Interest from bank savings accounts

4. Redemption amount of units of ELSS purchased in March 2019 and sold in March 2022

(LTCG is less than Rs.100000/ and hence not taxable)

5. Annuity from LICI

I opted for new Tax regime while filing up ITR2 for AY 2022-23.

I knew that no deduction is available under new tax regime, not even standard deduction of Rs. 50,000/-

Last year also I had opted for new tax regime and did not get benefit of any deduction.

Surprisingly, the system in ITR2 is showing that std deduction of Rs. 50,000/ from pension is available this year.

This is very confusing.

Would any expert clarify why it is showing?

(Kindly note that due unavoidable circumstances I could not file ITR within due date this year and am now trying to file u/s 139(4) with penalty.)