Tax laws can be complex, and the best regime for you (old vs new) depends on your income and deductions, here are some things to know.
1
Some salary components like House Rent Allowance & Leave Travel Allowance are partially or fully exempt from tax, reducing your taxable income.
2
Salaried individuals can claim deductions under sections like 80C, 80D, and 80G for investments in the Public Provident Fund.
3
The government offers a standard deduction that replaces several exemptions previously available.
4
Contributions made by your employer towards your EPF and NPS accounts are tax-free, boosting your retirement savings.
5
The new tax regime offers wider tax slabs and a higher tax rebate limit compared to the old regime.
6
Interest paid on certain loans like home loans can be claimed as a deduction, offering tax relief.
7
Gratuity received at retirement is largely tax-free up to a specific limit.