New tax regime: As the Government announced a new tax regime, the majority of taxpayers are confused about choosing a better regime for them to save more taxes. Many experts are suggesting to stick with the old tax regime as it provides a large number of deduction options under the income tax rule 80C, 80D, 80CCD, but the new tax regime also has few deduction options for taxpayers. Let’s talk about deductions options available in the new tax regime.
Standard Deduction of Rs 50,000
– In new tax regime, taxpayers can claim standard deduction of rs 50,000 without submitting any document to employer
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– if the taxpayer is a family pensioner, then he/she can claim a standard deduction of Rs 15000 under the new tax regime.
– In the Budget Speech, Finance Minister Nirmala Sitaraman said, ” standard deduction of Rs 50,000 to salaried taxpayers and deduction from family pension up to 15,000 will be allowed in new tax regime”
NPS Contribution
If the company you are working for contributes to your NPS account, then you are eligible to claim deduction for the contribution from your gross earnings. You can claim for this deduction under Section 80CCD(2) of income tax act.
Deduction against contribution to Agniveer Corpus Fund
In the Budget Speech on 1st of February, the Finance minister announced that any amount paid or deposited to Agniveer corpus Fund would be eligible to be claimed against newly proposed section 80CCG of Income tax act.
Also Read: Punjab and Sind bank hikes rates on fixed deposit, New interest rates inside
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