Income Tax Deduction: You can get tax exemption in these 7 ways, these are the provisions in the new regime..

Income Tax Deduction: There are currently two regimes running for depositing tax in the Income Tax Department. One of these regimes is known as the Old Tax Regime and the other as the 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 for tax exemption in the new tax regime.

A large number of people in the old tax regime are stuck with deductions. It is often said about the new tax regime that no extra tax exemption is available in it. But, this is not so. You can also take advantage of deductions 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 the taxpayers by announcing tax exemption on income up to 12 lakhs per annum. 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 the new regime in these seven ways.

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 of retirement benefits in the new tax regime. Gratuity received on retirement and payment of leaves during the job also comes under Income Tax Deduction. There is no tax on leave payments.

3. Exemption under NPS: There is no tax on the 14% contribution by the employer. You can claim this exemption as per Income Tax Deduction section 80CCD. At the same time, there is an income tax exemption on PF contributions as well.

4. If you contribute to the Corpus Fund under the Agneepath scheme, then tax exemption can be claimed under section 80CCH.

5. Similarly, if you get any kind of family pension, then under the new tax regime (Income Tax Deduction), you still get a deduction of up to Rs 25,000.

6. Under the allowances from the company, you can avail of 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).

7. Similarly, you can get a gift exemption if you receive a gift of up to Rs 50,000. You will not have to pay any tax on gifts of this amount.

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