With the new tax regime becoming the default option for most Indian taxpayers in FY 2024-25 (AY 2025-26), it’s essential to understand what deductions you can still claim—and which benefits you’ll need to let go of.

At JS Financial Services, we simplify the decision-making process for you, ensuring your tax plan is compliant, optimized, and stress-free.

✅ What Deductions Are Allowed Under the New Tax Regime?

While the new regime offers lower tax rates and a streamlined structure, it removes most traditional deductions and exemptions. Still, some crucial deductions remain available:

📌 1. Standard Deduction

A flat ₹75,000 deduction is available for all salaried individuals and pensioners.

This is an increase from ₹50,000 under the old regime and is automatically applied.

📌 2. Employer’s Contribution to NPS (Section 80CCD(2))

Deduction for employer’s contribution to the National Pension System (NPS).

Limit: Up to 10% of salary (or 14% for central/state government employees).

📌 3. Interest on Home Loan (Section 24b) – Let-Out Property

Interest paid on loans for let-out properties is deductible.

However, no deduction is allowed for self-occupied property loans under this regime.

📌 4. Agniveer Corpus Fund (Section 80CCH)

Contributions made to the Agniveer Corpus Fund are fully deductible.

📌 5. Family Pension Deduction

A deduction of the lower of 1/3rd of the actual pension or ₹25,000 is allowed.

**❌ What Deductions Are Not Allowed Under the New Regime?**

Popular deductions and exemptions not permitted under the new tax regime include:

Section 80C (PPF, ELSS, LIC, etc.)

Section 80D (Health insurance premiums)

**House Rent Allowance (HRA)

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**Leave Travel Allowance (LTA)

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Section 24b for self-occupied home loan interest

Section 80E (Education loan interest)

Section 80G (Donations)

Section 80TTA/80TTB (Savings account interest)

Professional Tax, Children’s Education Allowance, and **Entertainment Allowance

**

📌 JS Financial Insight: If your tax planning depends heavily on deductions, we recommend comparing both regimes before filing.

📊 New Regime Tax Slabs (FY 2024-25)

Annual Income (₹)	Tax Rate
Up to ₹3,00,000	0%
₹3,00,001 – ₹6,00,000	5%
₹6,00,001 – ₹9,00,000	10%
₹9,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

💡 Section 87A Rebate: Taxpayers with income up to ₹7 lakh get full tax rebate, resulting in zero tax liability under the new regime.

📚 Expert Tips from JS Financial Services

Simplicity First: No investment proofs or complex paperwork needed. The new regime suits those who prefer hassle-free compliance.

Best For: Individuals with minimal tax-saving investments or those seeking higher liquidity.

Do a Comparison: If you have housing loans, insurance, or heavy investments, use both regime calculators or consult a tax advisor to determine which option saves more.

Switch If Needed: You can change your tax regime every year (unless you have business income), so review your finances annually.

🧾 Conclusion: Choose Smart with JS Financial Services

The new regime offers ease and lower rates but limits flexibility on deductions. At JS Financial Services, we help you make informed choices by comparing both regimes, factoring in your income structure, financial goals, and available deductions.

📲 Ready to file your ITR with confidence?
Let JS Financial Services guide you through FY 2024-25 with clarity and accuracy.
🌐 Visit: www.jsfinancials.in | 📞 +91 73400 02251 | ✉️ info@jsfinancials.in

Deductions Under the New Tax Regime (FY 2024-25): Rules You Need to Know