Comparison of New Tax regime and Old Tax regime, Deductions allowed under new and old Tax regime
Here you can see the small comparison between New tax slab and old tax slab
| articulars | Old Tax Regime | New tax Regime | New Tax Regime |
|---|---|---|---|
| (until 31st March 2023) | (From 1st April 2023) | ||
| Income level for rebate eligibility | ₹ 5 lakhs | ₹ 5 lakhs | ₹ 7 lakhs |
| Standard Deduction | ₹ 50,000 | - | ₹ 50,000 |
| Effective Tax-Free Salary income | ₹ 5.5 lakhs | ₹ 5 lakhs | ₹ 7.5 lakhs |
| Rebate u/s 87A | ₹ 12,500 | ₹ 12,500 | ₹ 25,000 |
| HRA Exemption | ✓ | X | X |
| Leave Travel Allowance (LTA) | ✓ | X | X |
| Other allowances including food allowance of Rs 50/meal subject to 2 meals a day | ✓ | X | X |
| Standard Deduction (Rs 50,000) | ✓ | X | ✓ |
| Entertainment Allowance and Professional Tax | ✓ | X | X |
| Perquisites for official purposes | ✓ | ✓ | ✓ |
| Interest on Home Loan u/s 24b on: Self-occupied or vacant property | ✓ | X | X |
| Interest on Home Loan u/s 24b on: Let-out property | ✓ | ✓ | ✓ |
| Deduction u/s 80C (EPF | LIC | ELSS | PPF | FD | Children's tuition fee etc) | ✓ | X | X |
| Employee's (own) contribution to NPS | ✓ | X | X |
| Employer's contribution to NPS | ✓ | ✓ | ✓ |
| Medical insurance premium - 80D | ✓ | X | X |
| Disabled Individual - 80U | ✓ | X | X |
| Interest on education loan - 80E | ✓ | X | X |
| Interest on Electric vehicle loan - 80EEB | ✓ | X | X |
| Donation to Political party/trust etc - 80G | ✓ | X | X |
| Savings Bank Interest u/s 80TTA and 80TTB | ✓ | X | X |
| Other Chapter VI-A deductions | ✓ | X | X |
| All contributions to Agniveer Corpus Fund - 80CCH | ✓ | Did not exist | ✓ |
| Deduction on Family Pension Income | ✓ | ✓ | ✓ |
| Gifts upto Rs 5,000 | ✓ | ✓ | ✓ |
| Exemption on voluntary retirement 10(10C) | ✓ | ✓ | ✓ |
| Exemption on gratuity u/s 10(10) | ✓ | ✓ | ✓ |
| Exemption on Leave encashment u/s 10(10AA) | ✓ | ✓ | ✓ |
| Daily Allowance | ✓ | ✓ | ✓ |
| Conveyance Allowance | ✓ | ✓ | ✓ |
| Transport Allowance for a specially-abled person | ✓ | ✓ | ✓ |