The new tax regime is a revised or updated set of income tax rules and regulations introduced by the government. The new regime includes lower taxation rates than last financial year. The purpose of introducing the new regime is to simplify the tax system, promote fairness, or stimulate economic growth.
However, under the new regime following exemptions are unavailable:
- Under section 16 - Standard Deductions, Entertainment Allowances, Employment/ Professional tax.
- House Rent Allowance (HRA).
- All chapter VIA section - 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EEA, 80EEB, 80G etc {Excluding Section 80CCD(2)}.
- Leave Travel Concession (LTA).
- Under section 10(14) - Special Allowance such as Children's Education Allowance, Hostel Allowance, Transport Allowance, Uniform Allowance, etc.
- Under section 24 - Interest on borrowed loan for a self-occupied property.
- Set off any loss, under the head “Income from house property” with any other head of income.
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