Income Tax: These are the exemptions given under the old and new tax regimes; check list | Mint

In FY 2023, the income tax regime became a default regime for all taxpayers. This means the taxpayers are meant to file their income tax return (ITR) as per the new regime unless they choose to opt out of it.

And if you do not opt out of the new tax regime, you are entitled to pay your taxes under a lower tax slab (which is a highlight of the new regime), while you lose out on the deductions that are typically given in the old tax regime.

Meanwhile, you can use this Income Tax Calculator to find out which regime suits you more in view of the exemptions you are entitled to and the tax slab you fall under.

Here we give a lowdown on the exemptions that are given under the old tax regime followed by those given under the new tax regime.

Deductions/exemptions under the old tax regime

I. House Rent Allowance: This is the tax exemption that you can claim under the old tax regime.

II. Deduction under section 80C: These include exemption towards investment made in Equity Linked Saving Schemes (ELSS), PPF (public provident fund), payments made towards life insurance premiums, principal sum of a home loan, Sukanya Samridhi Yojana (SSY), National Savings Certificate (NSC) and Senior Citizens Savings Scheme, etc. The total limit of these deductions is capped at ₹1.5 lakh in a financial year.

III. Section 80D: Deduction towards health insurance premium and the maximum limit is ₹25,000.

IV. Section 80DD: The maximum amount of deduction allowed is Rs. 75,000 for the medical treatment, training, and rehabilitation of a dependent with a disability.

IV. Section80 CCD (1): This deduction is allowed for the investment made towards your NPS account

V. Section 80G: This deduction is allowed for giving donation given to charity.

VI. Standard deduction: Deduction of ₹50,000 is allowed under the old tax regime.

Deductions allowed in the new tax regime

I. Standard deduction: Standard deduction of ₹75,000 from salary is given under the new tax regime (NTR).

II. NPS: One can also claim deduction under section 80CCCD (2) for employer’s contribution to employee NPS accounts.

III. For Agnipath scheme: Income earned via Agnipath scheme is entitled to tax exemption under section 80CCH section. The scheme is a recruitment program for the Indian Armed Forces.