Can I claim section 80D in the new tax regime?

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No, you cannot claim the deduction under Section 80D for health insurance premiums and medical expenses if you choose the new tax regime. Section 80D is one of approximately 70 deductions and exemptions that were eliminated in the new tax framework, which is the default regime from the financial year (FY) 2023-24 onwards.

Is 80D available in the new tax regime?

The new tax regime has eliminated nearly 70 tax deductions that were previously allowed in the old regime. Under the new regime, deductions for health insurance premiums (Section 80D) and investments up to ₹1.5 lakh (Section 80C) are not available.

Which deductions can we claim in the new tax regime?

New Tax Regime Exemption List

  • Transport Allowances w.r.t. Person with Disabilities (PwD)
  • Conveyance Allowance.
  • Travel/ Tour/ Transfer Compensation.
  • Perquisites for Official Purposes.
  • Exemptions for Voluntary Retirement Scheme u/ Section 10(10C)
  • Gratuity Amount u/ Section 10(10)
  • Leave Encashment u/ Section 10(10AA)

Is there any tax exemption in the new tax regime?

Ans. In the old tax regime, the basic exemption limit for senior citizens is INR 3,00,000/- and for super senior citizens, it is INR 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of INR 7 lakh.

How to declare 80D in ITR?

The documents that are needed to fill 80D in ITR are:

  1. The health insurance policy documents for self, children, parents and spouse.
  2. Proof of payment for the health insurance premiums.
  3. All the receipts for payment of medical expenses.

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Can I claim both 80D and 80C?

Can I claim deduction under both Section 80D and Section 80C? Yes, you can claim a deduction of up to ₹ 1.5 lakh under Section 80C^ and of upto ₹ 1 lakh under Section 80D^ of the Income Tax Act, 1961 in a single financial year.

What is the limit of 80D and 80DDB?

The maximum deduction under Section 80D is Rs 25,000 for individuals and Rs 50,000 for senior citizens (aged 60 or above). The maximum deduction under Section 80DDB is Rs 1 lakh per dependent.

What is not allowed in the new tax regime?

Fewer Deductions: The new tax regime does not allow deductions such as HRA, LTA, Section 80C, , 80D, medical expenses, education loan interest, or investments in certain plans.

How is the 12 lakh exemption in the new tax regime?

For the FY 2025-26, taxpayers for an income up to Rs. 12 lakhs can be practically tax-free. The rebate limit has been increased to Rs. 60,000 for an income up to Rs 12 lakhs under the new regime.

What rebate is allowed in the new tax regime?

Under the new regime, a rebate of Rs.25,000 is allowed for an income up to Rs. 7 lakhs. Under the old regime, a rebate of Rs. 12,500 is allowed for an income up to Rs. 5 lakhs. For FY 2025-26, rebate of Rs. 60,000 is allowed under the new regime for an income up to Rs. 12 lakhs.

How to save tax on a new tax regime?

How to Save Tax in India? 10 Smart and Legal Ways for FY 2025-26

  1. Use Section 80C to Save up to ₹1.5 Lakh. ...
  2. Invest in National Pension System (NPS) – Section 80CCD(1B) ...
  3. Claim House Rent Allowance (HRA) ...
  4. Interest on Home Loan – Section 24(b) ...
  5. Tax Benefits on Education Loan – Section 80E.

What are the drawbacks of the new regime?

A key feature of the new regime is the limited scope for deductions. Taxpayers cannot claim most common deductions available under the old regime, including Section 80C (investments in LIC, PPF, ELSS, etc.), Section 80D (health insurance premiums), Section 80E (education loan interest), and House Rent Allowance (HRA).

What are the deductions allowed in the new tax regime for FY 2025 26?

For FY 2025–26, the new tax regime effectively makes income up to ₹12 lakh tax-free due to the enhanced rebate of ₹60,000. In addition, a standard deduction of ₹75,000 is available for salaried individuals, making a salary income of up to ₹12.75 lakh effectively tax-free.

Is 80D exempted in the new tax regime?

No, an individual or HUF cannot claim a deduction under sec 80D for payment of insurance premium if you choose to pay tax under the new tax regime as the deduction is available only under the old tax regime.

How to avoid 40% tax?

How to avoid paying higher-rate tax

  1. 1) Pay more into your pension. ...
  2. 2) Reduce your pension withdrawals. ...
  3. 3) Shelter your savings and investments from tax. ...
  4. 4) Transfer income-producing assets to a spouse. ...
  5. 5) Donate to charity. ...
  6. 6) Salary sacrifice schemes. ...
  7. 7) Venture capital investments.

What deductions can I claim in the new tax regime?

The new tax regime allows salaried people and senior citizens earning pensions a standard deduction of ₹75,000. Family Pension: If you have a family pension income, the new regime offers a deduction for it. You can claim a deduction of ₹25,000 or one-third of the pension amount, whichever is lower.

Why is the new tax regime not good?

The new tax regime has lower tax rates but fewer deductions and exemptions compared to the old tax regime. The old tax regime has more deductions and exemptions but higher tax rates. Calculate income tax liabilities for yourself using an income tax calculator and talk to a professional before choosing a regime.

What is taxable in the new tax regime?

The new income tax slabs and rates under the new regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs. 8 lakh to Rs. 12 lakh – 10%, Rs. 12 lakh to Rs. 16 lakh – 15%, Rs. 16 lakh to Rs. 20 lakh – 20%, Rs. 20 lakh to Rs. 24 lakh – 25%, and income above Rs. 24 ...

Can I claim 80C in the new tax regime?

Those following the new tax regime, however, will not be able to claim these deductions—making Section 80C relevant mainly for old regime taxpayers.

What is 80D income tax?

Section 80D of the Income Tax Act, 1961 offers tax deductions of up to ₹25,000 on health insurance premiums paid in a financial year. The tax deduction limit increases to ₹50,000 per fiscal year for senior citizens aged 60 years and above.

Can we claim both 80D and 80DD together?

Can both deductions be claimed at the same time? It is possible to benefit from both 80D and 80DDB deductions. However, to claim the 80DDB medical expenditure deduction, one must provide evidence of the prescription given by a doctor.

How is 12 lakh tax free?

This means, the tax liability will stand at Rs 60,000, which is the sum of Rs 0 (Rs 0-4 lakh at nil tax), Rs 20,000 (Rs 4-8 lakh at 5%), and Rs 40,000 (Rs 8-12 lakh at 10%). But the government provides a full rebate of Rs 60,000, making the total income of Rs 12 lakh tax-free in the hands of the taxpayer.

Can NRI claim deduction US 80C?

Most of the deductions under Section 80 are also available to NRIs. For FY 2023-24, a maximum deduction of up to Rs 1.5 lakh is allowed under Section 80C from gross total income for an individual.

How to save tax apart from 80C and 80D?

How to Save Taxes Beyond Section 80C?

  1. Section 80D: Health Insurance Premiums. ...
  2. Home Loan Interest Under Section 24(b) ...
  3. HRA Benefits. ...
  4. Section 80E: Education Loan Interest. ...
  5. Donations under Section 80G. ...
  6. Section 80TTA and 80TTB: Interest on Savings and Deposits for Seniors. ...
  7. National Pension System (NPS) under Section 80CCD.