With the brand-new tax obligation routine coming to be significantly common and extra usual, taxpayers stand to shed their qualification to declare the majority of the exception and reductions supplied under numerous stipulations such as areas 80C, 80D, 80DD and 80G under the old tax obligation routine.
Nearly 73 percent of taxpayers have currently chosen the brand-new tax obligation routine while CBDT chairman just recently mentioned that he wishes that 90 percent taxpayers would certainly go with the brand-new tax obligation routine from the following year.
However, in the brand-new tax obligation routine, taxpayers can declare reductions just under a couple of circumstances which we have actually noted below.
Taxpayers can declare exception under these situations:
1) Section 80 CCD (2 ): This exception is offered for the payments made by the company in the direction of the National Pension System (NPS).
2) Section 80CCH: This exception is offered for the revenue made using Agnipath system.
3) Section 80JJAA: This area makes it possible for qualified services to declare a 30 percent reduction on added staff member employment prices for 3 successive analysis years.
In instance, the taxpayer wishes to pull out of the brand-new tax obligation routine and data revenue tax obligation under the old tax obligation routine.
Rebate under 87A
The brand-new tax obligation routine permits taxpayers refund under 87A which is 25,000 (for FY 2023-24). In Budget 2025, this refund has actually been elevated to 60,00 (to be relevant from 2025-26).
Allowances enabled both the regimens
These are the allocations offered under both the regimens:
1. Any allocation given for satisfying the expense of traveling on excursion or transfer.
2. Any allocation, whether, given on excursion or through of trip about transfer, to satisfy the average day-to-day costs sustained by a staff member therefore lack from his typical location of responsibility.
3. Any allocation given for satisfying the expense sustained on transportation in the efficiency of responsibilities of a workplace or work of revenue if the complimentary transportation is not supplied by the company.
4. Transport allocation is given to a staff member, that is blind or deaf and stupid or orthopedically disabled with a special needs of reduced extremities, to satisfy his expense for the objective of travelling in between the location of his home and the location of his responsibility.
