Tax Deductions: You will get these deductions in the new tax regime as well, Changes in Tax Rebate

New Delhi. The new tax regime is being adopted rapidly and the government wants most taxpayers to adopt it. So far, about 73% of taxpayers have opted for it, and the government hopes that this figure will reach 90% by next year.

Although many traditional exemptions and deductions are not available in the new system, relief is still available in some selected cases.

The government has made some new changes in Budget 2025, which includes tax rebates and some special exemptions. Here we know in which cases you can get tax relief.

In which cases will tax exemption be available?

• Employer’s contribution to NPS – If the employer contributes to the National Pension System (NPS), it will be tax free under section 80CCD (2).
• Income from Agneepath scheme – Income earned under Agneepath scheme is exempted from tax under 80CCH.
• Deduction on recruitment of new employees – If the business recruits new employees, it will get 30% additional tax exemption for three years under 80JJAA.

Changes in Tax Rebate

Under Budget 2025, the tax rebate available under Section 87A has been increased. Till the financial year 2023-24, it was ₹ 25,000 but from the financial year 2025-26, it has been increased to ₹ 60,000.

Allowances available in both tax systems

Be it new or old, certain allowances will continue to be available in both tax systems:

• Travel expenses during transfer or tour
• Reimbursement of daily expenses incurred while travelling to work
• Travel expenses if the employer does not provide transport
• Transport Allowance for Blind, Hearing Impaired, Deaf-Mute or Severely Disabled Employees

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