Income Tax Deduction: The government has made many changes in the new regime of the Income Tax Department. At the same time, many people do not know how to get tax exemption in the new regime. In seven ways, you can get income tax exemption in the new tax regime (Income Tax Deduction). Regarding this, you should know some rules of income tax. Let us know about the provisions of tax exemption in income tax.
Income Tax Deduction: Currently two regimes are running for depositing tax in the Income Tax Department. One of these regimes is known as Old Tax Regime and the other as New Tax Regime (Income Tax). The income tax regime was defaulted in 2023. Still a large number of people in the country are using the old tax regime.
There is a provision of tax exemption in the new tax regime
A large number of people are stuck with deductions in the old tax regime. It is often said about the new tax regime that there is no extra tax exemption in it. But, this is not so. You can also take advantage of deduction in the new tax regime (Income Tax Deduction). Apart from employees, you can also take advantage of the new tax regime.
Income up to 12 lakhs is tax free
On February 1, Union Finance Minister Nirmala Sitharaman gave a big relief to taxpayers by announcing tax exemption on income up to 12 lakhs annually. During this time, a new tax slab was also introduced. Many exemptions were given under the New Tax Regime. At the same time, this tax regime (Income Tax Deduction) was started in 2020, which was made default in the year 2023. You can save tax in these seven ways in the new regime
1. In the name of standard deduction, employees and pensioners have been given a standard deduction of Rs 75000 under the new tax regime. This can be claimed.
2. You can also avail retirement benefits in the new tax regime. Gratuity received on retirement and payment of leaves during the job also comes under tax exemption (Income Tax Deduction). There is no tax of any kind on the payment of leave.
3. Exemption under NPS, there is no tax of any kind on the contribution of 14 percent by the employer. According to section 80CCD of Income Tax (Income Tax Deduction), you can claim this exemption. At the same time, there is also exemption in income tax on PF contribution.
4. Under the Agneepath scheme, if you contribute to its corpus fund, then tax exemption can be claimed under section 80CCH.
5. At the same time, if you get any kind of family pension, then under the new tax regime (Income Tax Deduction), deduction of up to Rs 25000 is still available.
6. Under the allowance from the company, leave travel allowance (LTA) under section 10(5), house rent allowance (HRA) under section 10(13A), special allowance as per section 10(14) and 10(17), entertainment allowance under section 16 (2) can be availed.
7. Similarly, you can get exemption on gifts up to Rs 50 thousand. You will not have to pay any tax on gifts of this amount.
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