New Tax Regime Deductions: 3 Deductions are available under the New Tax Regime. Stay updated before filing your taxes

72% of taxpayers have opted for the new tax regime, which includes a standard deduction, employer contributions to NPS, and tax exemption on gratuity. For FY 2024-25, the standard deduction is ₹75,000. However, most people are only aware of the standard deduction.

With every financial year, tax laws and policies undergo changes, impacting taxpayers across various income brackets. The new tax regime, introduced to simplify taxation and provide lower tax rates, initially came with no major deductions. However, recent updates have introduced three key deductions, making it crucial for taxpayers to stay informed before filing their returns.

" Taxpayers should be aware of available deductions to maximize tax savings and ensure compliance with the latest rules. Consulting an expert in Income Tax Services in Delhi can help in effective tax planning. "

Understanding the New Tax Regime

The new tax regime offers lower tax rates but eliminates most deductions and exemptions that were available under the old tax regime. Taxpayers now have to choose between lower tax rates with fewer deductions or higher tax rates with various exemptions.

3 Deductions Available Under the New Tax Regime

Despite the removal of most deductions, the government has recently allowed a few essential deductions under the new tax regime. These are:

1. Standard Deduction of ₹50,000 for Salaried Individuals and Pensioners

The standard deduction of ₹50,000, which was previously available only under the old tax regime, is now extended to taxpayers opting for the new tax regime as well.

• This deduction is applicable to salaried individuals and pensioners.
• It directly reduces the taxable income, lowering tax liability.
• A major relief for middle-class taxpayers who prefer the simplified tax regime.

" Salaried individuals can now claim a ₹50,000 standard deduction, making tax planning more efficient under the new tax regime. For further guidance, seek help from a Tax Consultant Company in Delhi. "

2. Employer’s Contribution to NPS (National Pension System)

Another deduction available under the new tax regime is the employer’s contribution to the National Pension System (NPS) under Section 80CCD(2).

• The deduction is up to 10% of salary (Basic + DA) for private-sector employees.
• Government employees can claim a deduction of up to 14% of salary.
• This deduction does not come under the overall limit of ₹1.5 lakh, making it a valuable tax-saving option.

" If your employer contributes to your NPS, you can claim a deduction and reduce your taxable income. Businesses should also ensure compliance with tax laws through TDS Return Services in Delhi. "

3. Deduction on Agniveer Corpus Fund Contributions

A new provision has been introduced for Agniveers enrolled under the Agnipath Scheme. Contributions made by Agniveers to the Agniveer Corpus Fund are eligible for deduction under the new tax regime.

• This deduction is exclusively for Agniveers serving under the Agnipath Scheme.
• Both employer and employee contributions to the fund are deductible.
• It helps in tax planning for personnel serving in the armed forces under this scheme.

" Agniveers can now benefit from tax deductions under the new tax regime, ensuring long-term financial security. Taxpayers should always seek expert consultation from the Best Tax Consultant Company in Delhi for optimal tax planning. "

How to Choose Between the Old and New Tax Regime?

While the new tax regime offers lower tax rates, it removes popular deductions like HRA, 80C (PPF, ELSS, Life Insurance), and 80D (Health Insurance). Choosing the right regime depends on:

• Your income level and structure
• The number of deductions you claim
• Your investment habits
• Employer contributions to NPS

" The right tax regime varies for each individual. For expert advice, consult Income Tax Services in Delhi to make an informed decision. "

Filing Your Taxes: Ensure Compliance with TDS and ITR Filing

To avoid penalties and ensure smooth tax filing, taxpayers must ensure compliance with TDS and ITR filing requirements.

• TDS Return Filing Services in Delhi help businesses file accurate TDS returns, avoiding unnecessary fines.
• Income Tax Return Services in Delhi ensure timely filing and proper tax planning.
• Seeking assistance from a Tax Consultant Company in Delhi ensures that taxpayers are fully compliant with the latest tax rules.

Conclusion

The new tax regime has introduced three key deductions that benefit salaried individuals, pensioners, and Agniveers. While most exemptions have been removed, these deductions provide some relief to taxpayers opting for lower tax rates.

Before filing your taxes, evaluate whether the new or old tax regime is more beneficial for you. Consulting the Best Tax Consultant Company in Delhi can help maximize your savings and ensure smooth tax compliance.

For hassle-free tax planning and filing, get expert assistance from professionals in Income Tax Services in Delhi, TDS Return Services in Delhi, and TDS Return Filing Services in Delhi. Proper tax guidance ensures that you make the best financial decisions while staying compliant with the latest tax laws.