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Which Deductions Are Allowed In New Tax Regime?

Maximize savings! Learn about permissible deductions in the new tax regime to optimize your tax planning strategy effectively.

  • 12 Mar 2024
  • 2 min read
  • 40 views

In the changing world of taxes, it's crucial to understand standard deductions in the new tax regime, as it can significantly impact your financial planning. So, let's delve into the recent reforms that have streamlined the range of deductions, so you have clarity on the same.

Deductions Allowed in New Tax Regime

 

  • Standard Deduction: Under the new tax regime, individuals are eligible for a deduction provided by the government, which allows for a fixed deduction from their taxable income.

 

  • Contributions to New Pension Scheme (NPS): Any contributions made by your employer towards the New Pension Scheme can be deducted. The good news is that you don't need to submit any supporting documents for this deduction.

 

  • Health Insurance Plan: Although the new tax system doesn't offer deductions for health insurance premiums, it's still an important aspect of planning. Taxpayers can explore other sections of the ITA where they may be eligible for deductions.

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Conclusion

Under the tax system, you have access to new tax regime deductions related to contributions made towards the New Pension Scheme. With its focus on simplicity and ease of compliance, taxpayers can navigate these deduction nuances efficiently.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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