Income tax return season is just a few months away, and many taxpayers are still unsure whether to opt for the new or the old tax regime. A common belief is that the new regime offers no deductions beyond the standard deduction, prompting some to prefer the old regime to claim benefits on investments and other eligible expenses.
However, data suggests that while the old regime allows deductions under sections such as 80C and 80D, the new tax structure also provides certain exemptions and reliefs beyond just the standard deduction.
These include:
Employer's gift
If you receive gifts or gift vouchers from the organisation where you work during the festive season or at any other time, it will fall under tax exemption. However, you can get this exemption on gifts up to ₹15,000 annually.
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Tea-snacks exemption at the workplace
Tax exemption is available on tea, snacks and food served free to employees during working hours. In this case, too, exemption is available up to the prescribed amount. According to experts, you can get a tax exemption of up to ₹26,400 annually for this.
Treatment of serious illness
If any taxpayer suffers from a serious illness, they will not have to pay any tax on the money provided by the employer for the treatment of that disease. However, the disease must be treated at an approved hospital.
Employer's loan
If you take an interest-free loan or a loan at a discounted rate from the organisation or employer in any emergency situation, tax exemption is available up to ₹2 lakh on that income.
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Laptop for office work
According to some experts, if an employee takes a laptop or computer from the organisation for office work, it is not considered as the employee's taxable income.
Some experts claim that under the old regime, investors get tax exemption up to ₹1.5 lakh under section 80C by investing in multiple investment instruments, including Provident Fund and ELSS. Additionally, section 80D provides an exemption from health insurance. Besides this, exemptions are also available on HRA, LTA, home loan, and education loan interest. This is not available in the new regime. However, it should be remembered that in the new regime, no tax has to be paid on income up to ₹12.75 lakh (including standard deduction). On the other hand, in the old regime, taxpayers get exemptions depending on various conditions for income above ₹5 lakh.
Incidentally, the Income Tax Department authorities published the draft of the new income tax law on Monday to know the opinions of all concerned parties before implementing it. The draft of the return form has also been published. According to some experts, this law may come into effect from April this year.
