BackNew income tax rules: Save taxes without 80C investment, standard deduction
You may choose not to invest in PPF, LIC, insurance, tax-saving ELSS mutual funds, etc but still save taxesThe new income tax rules make it easier for you to do income tax planning
PremiumNEW DELHI : For the middle-class, saving income tax so far meant making investments and expenses according to the list of deductions and exemptions. But as the Modi government gears up to do away with all income tax exemptions in the long-run, finance minister Nirmala Sitharaman has given an option to taxpayers to give a miss to all deductions and exemptions and still save taxes. The new income tax slab makes it easier for you to plan your taxes.
List of all income tax exemptions and deductions which you can now forego:
1) Deductions under 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). This means that you may not claim tax relief for investments under PPF, LIC, insurance, tax-saving ELSS mutual funds, etc.
2) Standard deduction, deduction for entertainment allowance and employment, professional tax.
3) House rent allowance (HRA)
4) Leave travel concession or leave travel allowance (LTA)
5) Some of the allowance as contained in clause (14) of section 10
6) Allowances to MPs/MLAs as contained in clause (17) of section 10
7) Allowance for income of minor as contained in clause (32) of section 10
8) Exemption for SEZ unit contained in section 10AA
9) Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23.
(Loss under the head income from house property for rented house shall not be allowed to be set off under any other head and would be allowed to be carried forward as per extant law)
10) Additional deprecation under clause (iia) of sub-section (1) of section 32
11) Deductions under section 32AD, 33AB, 33ABA
12) Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause
13) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35
14) Deduction under section 35AD or section 35CCC
15) Deduction from family pension under clause (iia) of section 57
Under the new income tax rules, those with an annual income of ₹5 lakh to ₹7.5 lakh will have to pay a reduced tax rate of 10%; between ₹7.5 lakh and ₹10 lakh 15%; between ₹10 lakh and 12.5 lakh 20%; between ₹12.5 lakh and 15 lakh 25%; and above ₹15 lakh 30%.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
