It was made default in the year 2023. Although it is often said about the new tax regime that no extra tax exemption is available in it, but it is not so. You can take advantage of other deductions. Not only salaried people, but other people can also take advantage of extra deductions under the new tax regime.
Tax Deduction: In Budget 2025, Finance Minister Nirmala Sitharaman gave a big relief to the taxpayers by announcing tax exemption on income up to Rs 12 lakh per annum. Along with this, new tax slabs were also introduced. This change was made under the New Tax Regime. At the same time, no change was made in the old tax regime. The Government of India introduced a New Tax Regime in 2020, in which many exemptions and deductions available under the old system were abolished.
It was defaulted in the year 2023. Although it is often said about the new tax regime that no extra tax exemption is available in it, but it is not so. Apart from tax exemption on annual income of Rs 12 lakh, you can also avail the benefit of other deductions. Not only salaried people, but other people can also avail the benefit of extra deduction under the new tax regime. Here we are going to tell about 6 types of deductions, under which you can claim tax exemption.
Deduction under New Tax Regime
Standard Deduction: All salaried employees and pensioners can avail standard deduction of Rs 75,000 under the new tax regime.
Retirement Benefit: If gratuity is received on retirement and payment is made for the remaining leaves during the job, then it comes under tax exemption. There is no tax on this. Whether you have chosen the new tax regime or the old tax regime.
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Exemption under NPS: There is no tax on the employer’s contribution of 14 percent in the National Pension System (NPS). It is completely exempted. You can claim this exemption under Section 80CCD of Income Tax. Similarly, exemption is also available on contribution to PF.
Tax exemption under Agneepath scheme: If you contribute to the corpus fund under Agneepath scheme, you can claim tax exemption under section 80CCH.
Family pension: If you get any kind of family pension, then under the new tax regime, deduction of up to Rs 25,000 is still available.
Exemption on allowances from the company: Leave travel allowance (LTA) under section 10(5), house rent allowance (HRA) under section 10(13A), other special allowances under section 10(14) and 10(17), entertainment allowance under section 16 (2) are available.
Exemption on gifts: In a conversation with CNBC Awaaz, tax expert Sharad Kohli said that if you receive a gift of up to Rs 50,000 from anyone throughout the year, then you will not have to pay any tax. Even if you have not chosen the new tax regime.
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With these changes, taxpayers should evaluate their tax savings. Under the new tax regime, you can claim tax exemption by doing all these things and can get tax exemption on more than Rs 12 lakh annual income.
