What is the maximum deduction for old tax regime?

Is 12 lakh tax-free for old regimes?

The Old vs New Tax Regime debate centers on tax slabs and deductions. Income up to ₹12 lakh is tax-free under the new regime, due to rebate. Beyond ₹25 lakh, the old regime is better if deductions exceed ₹8 lakh. Between ₹12 - 25 lakh, the choice depends on your deduction level.

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.

What is the maximum 80D exemption?

Section 80D permits a tax deduction of a maximum of ₹50,000 per financial year on medical insurance premiums for senior citizens and ₹25,000 for non-senior citizens. This limit includes a ₹5,000 deduction for any expenses paid towards preventative health check-ups.

How much can you save tax free?

How much money can you have in savings without paying taxes? There's no set limit to how much can have in your savings account before you need to pay tax. It depends on how much interest you earn from your savings, or how much you make in investment returns, and what your Personal Savings Allowance is.

How to save tax in old regime other than 80C?

Below are some tax saving options other than Section 80C from The Income Tax Act, 1961:

1. Section 80D - Health insurance premiums. ...
2. Section 80DD - Expenses towards a handicapped dependant. ...
3. Section 80DDB – Expenses towards treatment of specified illnesses. ...
4. Section 80E – Interest payment towards education loan.

What deductions can I claim on my tax return?

• Deductions you can claim.
• How to claim deductions.
• Work-related deductions.
• Memberships, accreditations, fees and commissions.
• Meals, entertainment and functions.
• Gifts and donations.
• Investments, insurance and super.
• Cost of managing tax affairs.

Can we declare more than 1.5 lakh in 80C?

The combined maximum deduction allowed under Sections 80C, 80CCC, and 80CCD(1) is ₹1.5 lakh. However, you can claim an additional deduction of ₹50,000 under Section 80CCD(1B) for contributions made to the National Pension Scheme (NPS).

Which tax regime is better, old or new?

The New tax regime is better for a salary of Rs 50 lakhs, saving you Rs 240000. The new regime offers a significant tax saving of Rs 2,40,000 even without claiming any deductions. This is because the highest tax rate in the new regime (30%) is lower than the highest tax rate in the old regime (30%).

How can I reduce my taxable income?

What to do at tax time

1. Contribute to tax-advantaged retirement accounts to maximize deductions. Traditional IRAs, 401(k)s, 403(b)s, and 457(b)s accounts allow for a dollar-for-dollar reduction of taxable income for contributions made. ...
2. Compare standard deduction to itemized deductions. ...
3. Consider tax credits.

Is it better to take standard deduction or itemize?

You should itemize deductions on Schedule A (Form 1040), Itemized Deductions if the total amount of your allowable itemized deductions is greater than your standard deduction or if you must itemize deductions because you can't use the standard deduction.

Can I claim both 80D and 80C?

Yes, salaried employees can claim both 80C and 80D deductions, provided they meet the necessary criteria. 80C allows deductions for eligible investments like PPF, EPF, life insurance premiums, and more, up to ₹1.5 lakh.

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 is 80CCC deduction?

Section 80CCC of the Income Tax Act, 1961, provides tax deductions of up to Rs. 1.5 lakh per year for contributions made towards specific pension funds offered by life insurance companies. This deduction is part of the overall limit under Section 80C.

Which tax regime is better for NRIs?

The old tax regime features high slab rates and allows several deductions and exemptions. It includes the Section 80C, 80D, and home loan interest. The new tax regime offers low tax slabs with limited exemptions/deductions, simplifies compliance, and reduces planning flexibility.

What is the difference between 80C and 80CCC?

Section 80C helps you to save tax up to Rs. 46,800 annually by deductions on investments up to ₹ 1.5 lakh/year from your taxable income. Whereas in comparison, Section 80CCC also provides deductions of up to ₹ 1.5 lakh/year for your investments towards specific pension funds.

What is the 90% rule for non-residents?

What is the 90% Rule? In a nutshell, the 90% rule is simple: if 90% or more of your worldwide income is from Canadian sources in the tax year, you're eligible for non-refundable tax credits reserved for residents.

What is exempted in the old tax regime?

Under the old tax regime, House Rent Allowance (HRA) is exempted under section 10(13A) for salaried individuals. However, this exemption is not available in the new tax regime.

Which tax regime is better for 13 lakhs?

For an annual income of ₹13 lakhs, the old tax regime is more beneficial due to the higher amount of deductions allowed, resulting in a lower tax liability compared to the new tax regime. The old regime allows for more deductions, significantly reducing the taxable income.

What is the standard deduction for 2025?

The standard deduction for 2025 was raised to $15,750 for single filers, up from the $15,000 previously in place. For married couples filing jointly, it is increased to $31,500, up from $30,000. And for heads of households, their standard deduction will be $23,625, up from $22,500.