New Income Tax Regime: Benefit of not one but three… Deductions that you can claim in the new tax regime – new income tax regime 2023: three deductions that can be claimed
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standard deduction
This deduction is available only to those taxpayers who have income from salary. In other words, it can be said that job professionals, pensioners and family pensioners can get the benefit of this. People having salary or pension income can claim standard deduction of Rs 50,000. This deduction can be claimed without providing any documents to the employer. While computing income tax on salary, the employer automatically takes into account the standard deduction. In the case of family pensioners, a standard deduction of Rs 15,000 has been proposed to be made available under the new tax regime. Till now this benefit was available in the old income tax regime.
NPS Contribution
As a salaried employee, you are entitled to claim a deduction if your employer is making contributions to your NPS account. This deduction will be available on the contribution made from gross income. This deduction can be claimed under section 80CCD (2) of the Income Tax Act. The maximum amount that an employee can claim under this section is different for private and government employees. Employees in the private sector can claim a maximum deduction of up to 10 per cent of their salary. At the same time, in the case of a government employee, a maximum deduction of up to 14% of the salary is allowed.
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Contribution to Agniveer Corpus Fund
Income tax exemption will be available under section 80CCH on the amount deposited in Agniveer Corpus Fund. This is a new section of the Income Tax Act. The deposited amount can be claimed as a deduction. The amount received on maturity from Agniveer Corpus Fund will also be tax-free.
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