<\/span><\/h2>\nLet\u2019s not get into what the old tax regime is all about, as you\u2019re already aware of it and have been filing so far. The focus is only on how the new regime is helpful and when it is not so that you can hop to the old regime.<\/p>\n
For us to go there, you must know what\u2019s still doable under the new regime.<\/p>\n
1. As mentioned, the standard deduction of Rs. 50,000 still exists here.<\/p>\n
2. Irrespective of the income level, if your family receives a pension, either \u2153 of the pension amount received or Rs 15,000, which is lower, is allowed for tax deductions in the new regime.<\/p>\n
3. As per the new tax regime, the tax deduction is only applicable for the let-out property and not for the self-occupied property. A standard deduction of 30% of the rental income derived from the property being let out is applicable per year and you can also avail of the interest paid on the home loan for the let property without any upper limit on it. Wherein any losses incurred cannot be set off against other income or carried over subsequent years.<\/p>\n
4. If your employer contributes to the NPS Tier 1 account, up to 10% of your basic salary and the dearness allowance combined are allowed for a tax deduction.<\/p>\n
5. If you have contributed to the Agniveer Corpus Fund, you can avail of tax deductions for this contribution and also tax exemptions on the income received from this contribution.<\/p>\n
6. Tax deductions are applicable on the prerequisite for official purposes; gift any received for Rs 50,000 deductions; under Section 10(10c), deductions on voluntary contribution towards retirement; under u\/s 10(10), exemption on gratuity amount; exemption on leave encashment under u\/s 10 (10AA) of up to Rs 25 lakhs; conveyance and daily allowances; and lastly, deductions on travel allowances for the disabled person.<\/p>\n
7. Surcharge rates for HNIs earning over Rs 5 crore are reduced to 25% from 37%.<\/p>\n
8. The new regime is by default applicable to everyone and if you wish to switch to the other regime, your income tax return has to be submitted along with Form 10IEA to do so. It doesn\u2019t mean you have to stick to whatever you choose; every year you get to choose the regime that suits your tax-saving needs.<\/p>\n
Now that you are aware of all that can be availed of as deductions and exemptions under the new tax regime, let\u2019s look at its benefits for scenarios.<\/p>\n
<\/span>The Scenario that Needs Your Attention<\/strong><\/span><\/h2>\nLet\u2019s think of an individual who has investments and is eligible for deductions and exemptions in the old regime and an individual who doesn\u2019t have investments in the new and old regimes for greater comprehension.<\/p>\n
For an ideal situation, let\u2019s imagine Ankita earns Rs 15,00,000 and see what seems viable to choose.<\/p>\n