Tax Deductions: There are ways to save money even in the new tax regime, many deductions and rebates are available
Income Tax Return (ITR) filing season is about to begin. You can choose either the old tax regime or the new tax system to file your income tax return. In the new tax regime, there is no tax on income up to Rs 12 lakh. Despite this, many taxpayers still prefer the old system as it offers more deductions and exemptions.
Tax Deductions: Some deductions and exemptions are also available in the new tax regime, which most income tax payers are not aware of. By taking advantage of these deductions and rebates, you can reduce your tax liability significantly. Today we will tell you about the exemptions available in the new tax regime.
In the new tax regime, a rebate of Rs 60,000 is available under Section 87A of the Income Tax Act. If your taxable income is Rs 7 lakh or less, then you can take advantage of this. That is, if your tax liability is up to Rs 60,000, then you will not have to pay a single rupee of tax.
If someone is getting family pension, then in the new tax regime also he can avail deduction of up to ₹ 25,000. This can reduce your tax liability significantly.
Employer contribution to NPS is also exempted in the new tax regime. If your employer is contributing to your NPS account, then this contribution will be tax free under section 80CCD (2). Contribution made by the employee himself will not be covered under this exemption.
In Budget 2024, Finance Minister Nirmala Sitharaman has increased the standard deduction for salaried persons and pensioners from ₹ 50,000 to ₹ 75,000. Those adopting the new tax regime can also avail this deduction.
In the new tax regime, if you get House Rent Allowance i.e. HRA, Leave Travel Allowance or some other special allowances from your company, then tax exemption can also be taken on them. Gifts up to ₹ 50,000 received from a friend or relative in a financial year will also be tax free.
The youth who have joined the Indian Army under the Agneepath Scheme will get the benefit of tax exemption under Section 80CCH on the amount received in the Agniveer Corpus Fund.
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