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Suspense Crime,Digital Desk: Tax Deductions: New tax regimes still offer some deductions and exemptions which is unknown to most income taxpayers. By utilizing these deductions and benefits, you can greatly minimize your tax burden. Today, we shall enlighten you on the exemptions granted under the new tax regime.
An exemption of ₹ 60,000 is provided in the new tax regime under section 87A of the Income Tax Act. You can avail this benefit if your taxable income is ₹ 7 lakh or less. In other words, if your tax liability is Rs 60,000 or less, then you will not have to shell out any amount as tax.
If someone is receiving family pension, then in the new regime also he can claim exemption of up to ₹ 25,000. This has the potential to reduce your tax burden to a great extent.
In the new regime, employer contribution on NPS is also not subjected to taxation. If your employer is contributing to your NPS account, then this contribution will be exempt from tax under section 80CCD (2). Contributions made by the employee are not eligible for this exemption.
In the new Budget of 2024, the salary and pension standard deduction has been updated from ₹50000 to ₹75000, which is an increase of ₹25000. It was confirmed by Finance Minister Nirmala Sitharaman that this deduction is also available to those adopting the new tax regime.
Furthermore, employees receiving House Rent Allowance (HRA), Leave Travel Allowance (LTA), or any other special allowance are eligible for exemption under the new tax regime. Furthermore, as a monetary gift from a friend or family, total tax-exempt gifts will amount to ₹50,000 for the entire financial year.
Exemption under tax section 80CCH will be available for new recruits of Agneepath Scheme in the Indian Army who receive Agniveer Corpus Fund.
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