Here’s a list of the main exemptions that tax payers will have to forgo if they opt for the new regime.
(i) Leave travel allowance exemption which is currently available to salaried employees twice in a block of four.
(ii) House rent allowance normally paid to salaried individuals as part of salary. This could be claimed as tax exempt upto certain specified limits if the individual was staying in rented accommodation
(iii) Standard deduction of Rs 50,000 currently available to salaried tax payers
(iv) Deduction for entertainment allowance and employment/professional tax as contained in section 16
(v) Tax benefit on interest paid on housing loan taken for a self occupied or vacant house property: Interest paid on housing loan for such a property could be claimed as a deduction from income from house property which resulted in a loss from house property (as the property was self/occupied or vacant). This loss could be set off against salary income thereby reducing the individuals’ taxable income and net tax liability. This comes under section .
(vi) Deduction of Rs 15000 allowed from family pension under clause (iia) of section 57
(vii) The most commonly claimed deductions under section 80C will also go. This includes the commonly availed section 80C deductions claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF etc.
However, deduction under sub-section (2) of section 80CCD (employer contribution on account of employee in notified pension scheme—mostly NPS) and section 80JJAA (for new employment) can still be claimed
(viii) The deduction claimed for medical insurance premium under section 80D will also not be claimable
(ix) Tax benefits for disability under sections 80DD and 80DDB will not be claimable
(x) Tax break on interest paid on education loan will not be claimable-section 80E
(xi) Tax break on donations to charitable institutions available under section 80G will not be available
All deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc) .
