Budget Update
Starting from 1st April 2025, a salaried individual earning up to Rs.12,75,000 is exempted for pay tax.
Eligibility
All individuals i.e., applicable to men, women, senior citizens or super senior citizens.
Deduction Allowed in New Tax Regime
There are many exemptions allowed, which you can reduce your tax liability with these deductions:
- Standard deductions – Rs. 75,000/- for salary/Pension.
- Family Pensioners – Rs.15,000 or 1/3rd, whichever is lower.
- Interest received on Post Office savings u/s 10(15)(i) the maximum amount of Rs. 3,500.
- Gratuity up to Rs. 20,00,000 for private employees.
- Adhoc deduction – 30% on Rent.
- Interest on Home Loan – If property is rented.
- Employer contribution in NPS 80CCD(2) – 14% of Basic Salary + DA
- Transport Allowance for specially abled people
- Deposits in Agniveer Corpus Fund u/s 80CCH(2)
- Expenditure incurred for travelling to work, 80JJAA.
- Depreciation u/s 32 of the IT Act except additional depreciation.
- Allowance for travelling for employment.
- Income from Life Insurance Policy on maturity u/s 10(10D).
- Leave encashment 10(10AA) on retirement, retirement cum death benefit.
- Deductions u/s 54 long-term Capital Gain on sale of a House Property and u/s 54F long-term Capital Gain on sale of any asset other than a House Property.
- PPF and Sukanya Samriddhi Account Interest and maturity amount.
By planning wisely, you can lower your taxable income significantly.
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