Option shall be exercised for every year in case where individual does not have business income, for others once exercised for New Scheme will not be allowed to change in subsequent Years.
Various Scenarios of Section 80D:ScenarioPreventive Health Check-up/Insurance PremiumDeduction under 80-DSelf, family, childrenParents Individual and parents below 60 years25,00025,00050,000Individual and family below 60 years but parents above 60 years25,00050,00075,000Both individual, family and parents above 60 years50,00050,0001,00,000
List of Other Important Deductions Not Available in New Scheme
For Entertainment Allowance (Up to Rs. 5,000)
For Professional Taxes (Actual Basis)
Section 80E ( Interest on Loan taken for Higher Education)
Donations under Section 80G
List of Important Deductions Still Available in New Scheme
Employer Contribution to NPS (Section 80CCD (2) up to 10% (14% in case of Government Employee).
Interest on Rented out Property, subject to condition that any excess of interest over rental income will not be set-off (in simple term reduced) from other heads of income including salary.
Transport Allowance available to Divyang Employee.
Any Allowance to meet the cost of travel on tour or on transfer.
Daily Allowance on tour.
Withdrawal by an employee from the Employees’ Provident Fund (EPF) is not taxable after 5 years of continuous service.
The amount received on the maturity of PPF (Public Provident Fund) account and the yearly interest credited to the PPF balance.
Under Section 10 (10D) of the Income Tax Act, the sum assured and any bonus paid on maturity or surrender of the life insurance plan is tax free. Maturity proceeds continue to be exempt under Section 10(10D) even in the new regime.
Withdrawal from National Pension Scheme (NPS) on maturity or premature closure up to 40% of the amount received on such withdrawal remains tax free for all. In case of partial withdrawal from NPS, up to 25% of the contributions made by the individual will be tax free.
Gratuity received from the employer up to ₹20 lakh after rendering 5 years of continuous service etc.
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