Deductions and exemptions allowed in new tax regime

Deductions and exemptions allowed in new tax regime

Standard deduction of ₹75,000

Employer's contribution to NPS up to 14% of basic salary

TAX

Leave encashment on retirement^ (maximum exemption 25 lakh)

Gratuity (maximum exemption 20 lakh)^

Voluntary retirement (maximum exemption ₹5 lakh)^

^Subject to prescribed limits

Income from house property

INTEREST on home loan can be set-off against rental income^^

30% standard deduction on rental income

^^If there is loss, it can't be set-off against other heads of income or carried forward

Mr. A will be exempt from taxes on below allowances...

Travel: If Mr. A's company pays for his ticket for an official trip to Delhi or any other city

Daily allowance: Reimbursement given to Mr. A for his daily expenses on such a tour