New Tax Regime Exemption List – Complete Tax Benefit Guide

Key Takeaways 
 

• You get a standard deduction of ₹75,000 under the new tax regime. No investment proofs are required.
   
• Deductions under Section 80C, Section 80D, and HRA are not allowed. This makes tax planning simpler but limited.
   
• Exemptions still exist. These include gratuity, leave encashment up to ₹25,00,000, and employer NPS contribution under Section 80CCD(2) up to 14%. 
   

“Salary aati hai, tax kat jaata hai, par samajh nahi aata kya bacha sakte hain.” If you feel the same, then let’s understand the new tax system. 

The new tax regime exemption list explains the specific incomes and allowances that remain tax-free even when you choose lower tax rates. You need clarity before selecting this option, with fewer deductions but simpler slabs. 

I earn ₹8,00,000 annually and claim the ₹50,000 standard deduction, my taxable income becomes ₹7,50,000. I cannot claim LIC or medical insurance deductions, but I benefit from lower slab rates automatically.

Bonus Tip: The new tax regime applies by default from FY 2023-24. Tax is calculated under this regime automatically. The old regime applies only when you choose it while filing the return or inform your employer in advance.This change makes tax filing easier and helps salaried employees avoid mistakes.

Eligibility Criteria for New Tax Regime Exemption List

You must meet specific conditions to claim exemptions under the new regime. The Income Tax Act clearly defines eligibility rules.
 

These rules apply uniformly, including cases under the new tax regime exemption list for salaried employees. I must remember that once chosen, the regime affects my entire financial year tax calculation.

Deduction Limits Under the New Tax Regime Exemption List 

The new regime allows only a limited set of deductions, each with fixed limits.
 

These deductions form the official new tax regime exemption list under section 10 of the Incone tax Act,1961, and no additional personal investments increase my tax benefit.

Required Documents for New Tax Regime Exemption List

You need basic documents to support the allowed exemptions, even though paperwork is reduced:
 

You do not need to submit investment proofs like LIC or PPF receipts. This makes the new tax regime exemption list 2024 25 easier to manage for salaried individuals.

How to Claim a New Tax Deduction in ITR? 

You can claim deductions under the new regime by following these steps:

1. Select the New Tax Regime option while filing the Income Tax Return on the official portal. This ensures that lower tax slab rates are applied automatically.
   
    
2. Enter complete income details, including salary, pension, and any other taxable income, exactly as mentioned in Form 16.
   
    
3. Claim only those deductions that are permitted under the new tax regime, such as the standard deduction and employer contribution to NPS.
   
    
4. Verify all income and tax details with Form 16 to confirm accuracy and avoid mismatches.
   
    
5. Submit the return after review and complete e-verification using Aadhaar OTP, net banking, or other approved methods.

You do not manually calculate slab benefits. The portal auto-computes tax based on my selection. This simplicity is why many professionals now evaluate which deductions are allowed in new tax regime before investing money unnecessarily.

FAQs Related to the New Tax Exemption List 

1. What happens to ELSS mutual funds under the new tax regime? Should investment continue?

Under the new tax regime, ELSS mutual fund investments do not qualify for tax deduction under Section 80C. However, ELSS can still be continued as a long-term wealth creation tool, even though it no longer provides tax-saving benefits under the new regime.

2. What exemptions have been removed from the new tax regime by the Government of India?

The government has removed major exemptions such as HRA, LTA, Section 80C, Section 80D, Section 24(b) home loan interest, and most other Chapter VI-A deductions. Only a limited set of exemptions notified in the Income Tax Act are allowed.

3. How can tax be saved under the new tax regime?

Tax savings under the new regime come mainly from lower slab rates, the ₹75,000 standard deduction, and employer contribution to NPS under Section 80CCD(2). Strategic salary structuring and accurate income reporting help reduce tax liability.

4. What deductions are eligible in the new tax regime for FY 2024–25?

For FY 2024–25, eligible deductions include the standard deduction of ₹75,000, employer NPS contribution under Section 80CCD(2), family pension deduction, and specified exemptions like gratuity and leave encashment on retirement.

5. Is the new tax regime exemption list for salaried employees better?

Yes, the new tax regime is generally more suitable for salaried employees who do not invest heavily in tax-saving options like Section 80C or Section 80D. If an employee mainly uses the ₹75,000 standard deduction and employer NPS contribution under Section 80CCD(2), the lower tax slab rates can result in a lower overall tax liability.
 

Apply for Loans Fast and Hassle-Free

Apply Now

About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.