The next is an inventory of tax deductions obtainable within the new tax regime from 1st April 2023 (after the price range 2023 announcement).
- Household Pension: A deduction of 33.33% or Rs. 15000, whichever is much less, is allowed from the household pension within the new tax regime from 1st April 2023.
- An ordinary deduction of Rs. 50,000 is allowed for salaried taxpayers and pensioners within the new tax regime from 1st April 2023.
- Employer’s contribution to the NPS (current profit)
Listing of allowances allowed within the New Tax regime (current advantages)
- Transport allowance for many who are otherwise abled.
- Conveyance allowance or journey or switch for official functions.
- On-duty every day allowance
FAQ concerning the new tax regime
Can I swap again to the previous tax regime if I select the brand new one? Sure, you may every year in case you are salaried with no enterprise earnings. When you have a enterprise earnings you may swap again to previous as soon as however then can’t transfer to the brand new regime once more in future.
This implies salaried folks or HUF with no enterprise earnings (these submitting ITR1 and a pair of) can select between the previous and new regime (part 115BAC) yearly.
Others (with enterprise earnings) can select to be within the previous regime for so long as they need or can however as soon as they shift to the brand new tax slab, they are going to be given an choice to withdraw solely as soon as. In the event that they swap again to the previous regime from the brand new regime, they can’t come again to the brand new regime except their enterprise earnings is zero.
Do I get to decide on this whereas submitting ITR? The New Tax Regime has been made the default selection. This implies, if you happen to do no nothing, the system will assume the brand new tax regime. Should you want to go for the previous tax regime, you could particularly select it.
Listing of deductions excluded from New Tax Regime (Part 115BAC)
(i) Depart journey concession as contained in clause (5) of part 10;
(ii) Home lease allowance as contained in clause (13A) of part 10;
(iii) A few of the allowance as contained in clause (14) of part 10;
(iv) Allowances to MPs/MLAs as contained in clause (17) of part 10;
(v) Allowance for earnings of minor as contained in clause (32) of part 10;
(vi) Exemption for SEZ unit contained in part 10AA;
(vii) Deduction for leisure allowance and employment/skilled tax as contained in part 16;
(viii) Curiosity underneath part 24 in respect of self-occupied or vacant property referred to in subsection (2) of part 23.
(Loss underneath the top earnings from home property for rented home shall not be allowed to be set off underneath any
different head and can be allowed to be carried ahead as per extant legislation);
(ix) Extra deprecation underneath clause (iia) of sub-section (1) of part 32;
(x) Deductions underneath part 32AD, 33AB, 33ABA;
(xi) Varied deductions for donation for or expenditure on scientific analysis contained in sub-clause (ii) or sub-clause
(iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of part 35;
(xii) Deduction underneath part 35AD or part 35CCC;
(xiii) Deduction from household pension underneath clause (iia) of part 57;
(xiv) Any deduction underneath chapter VIA (like sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA,
80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on). Nonetheless, deduction underneath sub-section (2) of part 80CCD (employer contribution on account of the worker in notified pension scheme) and part 80JJAA (for brand spanking new employment) may be claimed.
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