Income Tax Investment Limits & Guidelines.

Old Tax Regime
Income Tax Slabs
For Men & Women below 60 Years	Rate
Upto Rs.2,50,000	NIL
Rs.2,50,001 to Rs.5,00,000	5%
Rs.5,00,001 to Rs.10,00,000	20%
Rs.10,00,001 & Above	30%

New Tax Regime
Income Tax Slabs	Tax Rate
Upto Rs.3,00,000	NIL
Rs.3,00,000 to Rs.6,00,000	5%
Rs.6,00,001 to Rs.9,00,000	10%
Rs.9,00,001 to Rs.12,00,000	15%
Rs.12,00,001 to Rs.15,00,000	20%
Rs.15,00,001 and above	30%

For Men & Women above 60 Years and less than 80 Years
Upto Rs.3,00,000	NIL
Rs.3,00,000 to Rs.5,00,000	5%
Rs.5,00,000 to Rs.10,00,000	20%
Rs.10,00,000 & Above	30%

For Men & Women above 80 Years (Super Senior Citizen)
Upto Rs.5,00,000	NIL
Rs.5,00,000 to Rs.10,00,000	20%
Rs.10,00,000 & Above	30%

Rebate for Old Tax regime – upto Rs.12,500 on Taxable Income upto Rs.5,00,000. Rebate for New Tax regime – upto Rs.25,000 on Taxable Income upto Rs.7,00,000.

The Standard deduction u/s 16 increased to Rs.50,000/- for both Tax regime.

Education Cess and Secondary & Higher Education Cess on Income Tax increased to  4% on Income Tax amount.

Surcharge at the rate of 10% on total Taxable income between Rs. 50 lakhs to Rs 1 crore.

Surcharge at the rate of 15% on total Taxable income between Rs. 1 Crore to Rs 2 Crores.

Surcharge at the rate of 25% on total Taxable income between Rs. 2 Crores to Rs 5 Crores.

For Old tax regime Surcharge at the rate of 37% on total Taxable income above Rs. 5 Crores. For New tax regime Surcharge at the rate of 25% on total Taxable income above Rs. 5 Crores.

Key Income Tax Exemptions Allowed U/S 10 and Perquisites					Exemption allowed
						Old Tax Regime		New Tax Regime
	1. House Rent Allowance Exemption:
	– Actual HRA received					Whichever is Least of 3 calculated amounts		No Exemption Allowed
	– Rent Paid Less 10% of Basic Salary
	– 40% or 50% of Basic Salary *
	* : 50% in case of Metro cities (Delhi, Mumbai, Chennai & Kolkatta)
	2 . a. Children Education Allowance					Rs.100 per month per child upto a maximum 2 children
	b. Allowance granted to meet hostel expenditure on employee’s school going children					Rs.300 per month per child upto a maximum 2 children
	3. Leave Travel Allowance					Only travel bills within India. Exemption granted only twice in a block of four years. Current LTA Block is 01/01/2022 – 31/12/2025
	4. Telephone Reimbursement					Actual expenditure or amount reimbursed whichever is lower
	5. Leave Encashment					Actual OR maximum upto Rs.25,00,000 for Lifetime		Upto Rs.25,00,000 for Lifetime
	6. Gratuity					Actual OR maximum upto Rs.20,00,000 for Lifetime		Upto Rs.20,00,000 for Lifetime
	7. Retrenchment Compensation					Actual OR maximum upto Rs.5,00,000		No Exemption Allowed
	8. Meal Vouchers					Reasonable amount. Usually paid Rs. 50 per meal per day
	9. Fuel Reimbursement (Employee Owned Car)					Least of following-
						a) Actual expenditure
						b) i. If engine CC < 1.6 L then upto Rs. 1800 per month
						ii. If engine CC > 1.6 L then upto Rs. 2400 per month
	10. Driver Reimbursement (Employee Owned Car)					Rs.900 per month
	11. Uniform Allowance					Allowance granted to meet expenditure on purchase/ maintenance of uniform for performance of official duty

For a complete list of exeptions u/s 10 please visit – http://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx

Income Tax Deductions Allowed chapter VI-A		Exemption allowed
	Section 80C – Investments			Old Tax Regime		New Tax Regime
	1. Provident Fund			Maximum exemption allowed under 1 to 10 is Rs.1,50,000. All investments should be in the name of Self, Spouse or Children only. Investments in the name of parents are not allowed as exemption		No deduction allowed under new Tax Regime
	2. Life Insurance Premium
	3. Tuition Fees (Children Education)
	4. NSC and Interest on NSC
	5. Principal Repayment of Hosing Loan
	6. Fixed Deposit with Banks
	7. Contribution to unit linked insurance
	8. Contribution to Equity Linked Saving Scheme / Mutual Fund
	9. Sukanya Samriddhi scheme
	10. Life Insurance Pension Scheme (section 80CCC)
	11. Contribution to pension scheme of central gov’t – section 80CCD(1b)			Additional exemption of Rs.50,000 over & above Rs.1.50 Lacs u/s 80C		No deduction allowed under new Tax Regime
	12. Employer Contribution to pension scheme of central gov’t – section 80CCD(2)			Maximum upto 10% of Basic		Maximum upto Rs.7.50 lacs is allowed combining Employer contribution to NPS, SA and PF
	Section 80D -Medical Insurance Premium for self/spouse/children
	– Age upto 60 years			Rs.25,000		No deduction allowed under new Tax Regime
	– Age above 60 years			Rs.50,000
	Section 80D(2B) – Medical Insurance Premium for parents
	– Age upto 60 years			Rs.25,000
	– Age above 60 years			Rs.50,000
	Section 80DD – Medical Expenses for handicapped dependents					No deduction allowed under new Tax Regime
	– Severity below 40%			NIL
	– Severity 40% to 80%			Rs.75,000
	– Severity more than 80%			Rs.1,25,000
	Section 80DDB – Medical treatment for specified Diseases					No deduction allowed under new Tax Regime
	– Age upto 60 Years			Rs.40,000
	– Age above 60 years			Rs.1,00,000
	Section 80E – Interest on Higher Education Loan					No deduction allowed under new Tax Regime
	The deduction is available for maximum 8 years (including current financial year) or till the interest is paid, whichever is earlier			Interest amount repaid in th
	Section 80EE – Additional Tax Deduction on Home Loan			Up to Rs 50,000/- if following criteria are met		No deduction allowed under new Tax Regime
	First time home buyer can claim an additional Tax Deduction			The assesses (Employee) should not own any residential Property in his name.
				The home loan should have been sanctioned in FY 2016-17.
				Loan amount should be less than Rs.35 Lacs
				The value of the house should not be more than Rs 50 Lakh.
	Section 80EEA – Additional Tax Deduction on Home Loan			Up to Rs 1,50,000/- if following criteria are met		No deduction allowed under new Tax Regime
	First time home buyer can claim an additional Tax Deduction			The assesses (Employee) should not own any residential Property in his name.
				The home loan should have been sanctioned in FY 2019-20 and 2020-21.
				The stamp duty value of the house should not be more than Rs 45 Lakh & The home buyer should not have any other existing residential house in his name.
	Section 80EEB – Interest on Electric Vehicle Loan			Up to Rs 1,50,000/- if following criteria are met		No deduction allowed under new Tax Regime
	Purchase of Electric Vehicle			The loan taken must to be to purchase an Electric Vehicle.
				The Electric Vehicle loan should have been sanctioned in between 01.04.2019 to 31.03.2023.
	Section 80U – Deduction for Permanent Disability Self					No deduction allowed under new Tax Regime
	– Severity below 40%			NIL
	– Severity 40% to 80%			Rs.75,000
	– Severity more than 80%			Rs.1,25,000
	Section – 24 (b) Interest on Housing Loan U/S 24			Actual OR Maximum upto Rs.2,00,000 (Combined for Self-occupied Property and Let out property)		No deduction allowed under new Tax Regime
	Loss from Let-out property