| 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 | |||||||
| 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 | ||||||
