Deductions not allowable under the New Tax Regime

Deductions not allowable under the New Tax Regime.

According to Income Tax Act 1961 under the new tax regime although tax rate is lower than old regime but certain deduction and exemption are not allowable.

 

New tax regime  rate are as  following.

Upto Rs 2,50,000                                            Nil

From 250001 to 5,00,000                           5%

From Rs.5,00,001 to 7,50,000                   10%

From Rs7,50001 to Rs10,00,000               15%

From 10,00,0001 to Rs.12,50,000              20%

From 12,50,001 to Rs 15,00,000                  25%

Above Rs 15,00,000                                                30%

 

 

Deductions not allowable under the new tax regime.

  1. House rent allowance exempt under section 10(13A)
  2.  Leave travel concession or assistance exemption under section 10(5).
  3. Daily allowance or Constituency allowance received by a Member of Parliament or Member of State legislature which is exempt under section 10(17)
  4.  Special allowances which are exempt under section 10(14) other than those as may be prescribed for this purpose.
  5.  Deduction available to SEZ unit under section 10AA
  6.  Deduction  of Rs.1500 under section 10(32)
  7. Standard deduction of Rs.50,000 under section 16(ia) and deduction on account of tax on employment.
  8. Additional depreciation under section 32(1(iia)
  9. Loss under the head income from house property.
  10.  Investment allowance of 15% if new plant and machinery is installed in notified backward areas in certain States as per section 32AD.
  11. Deduction for family pension under section 57(iia) of a Sum equal to 1/3 of extension project.
  12. Deduction under section 35ADin respect of expenditure on specified business.
  13. Deduction under section 35CCC in respect of expenditure on specified business.
  14. Deduction under section 33AB to an assessee engaged in the business of growing & manufacturing of Tea/Coffee/ Rubber.
  15.  Deduction in respect of payment made to certain association/ institutions for scientific research ( section 35 (1)(ii)
  16. Deduction under section 33ABA on account of deposit in Site Restoration Fund.

 

Section 87A Rebate is applicable on long term capital gain