Author: sufi

Marginal relief in new tax regime protects eligible resident individuals from a disproportionate increase in tax when their taxable income crosses the ₹12 lakh Section 87A rebate threshold by a relatively small amount. For FY 2025-26, the new tax regime provides a Section 87A rebate of up to ₹60,000 when total income does not exceed ₹12 lakh. When eligible income goes above that limit, marginal relief can reduce the tax so that the additional tax does not exceed the additional income over the threshold, subject to the applicable rules. The relief is particularly relevant around the ₹12 lakh to ₹12.71…

Yes, but only if you do not have business or professional income. Salaried individuals and taxpayers with only non-business income (interest, rent, capital gains) can generally choose between the old and new tax regimes each year while filing their income tax return. However, if you have business or professional income, the rules are far more restrictive you can opt out of the new tax regime only once in a lifetime, and re-entry into the new regime is also limited. The regime your employer selected for TDS purposes does not permanently lock you in. Even if your employer deducted tax under…

Introduction: What Are the Hidden Costs of the New Tax Regime? The hidden costs of the new tax regime are primarily the deductions and exemptions a taxpayer gives up by choosing it. These are not extra government charges or penalties. They are foregone tax benefits that could have reduced taxable income under the old regime. For FY 2025-26, the new regime offers a ₹4 lakh basic exemption limit, a ₹75,000 standard deduction for eligible salaried taxpayers and pensioners, and a Section 87A rebate of up to ₹60,000 for eligible resident individuals with total income up to ₹12 lakh. For a…

For ₹15 lakh taxable income under the new tax regime in FY 2026-27, the income tax before cess is ₹1,05,000, and the total after 4% Health and Education Cess is ₹1,09,200. This assumes ₹15 lakh is already taxable income, not gross salary. For a salaried taxpayer earning ₹15 lakh gross salary, the ₹75,000 standard deduction reduces taxable income to ₹14.25 lakh, resulting in tax of ₹97,500 including cess. This article compares these figures with ₹12 lakh, ₹13 lakh, ₹14 lakh, ₹16 lakh and ₹20 lakh income under the FY 2026-27 new regime and explains how Section 87A and marginal relief…

Tax can still be legally reduced under the new tax regime for FY 2025-26 (AY 2026-27), although the available deductions are more limited than under the old regime. Last updated: October 2026. For eligible taxpayers, the main benefits include the ₹75,000 standard deduction, Section 87A rebate of up to ₹60,000, and eligible employer contributions to NPS under Section 80CCD(2). The key to understanding how to save tax in new tax regime is knowing which benefits remain available and avoiding deductions that the new regime does not permit. Discover More About:👇 How to Save Tax in New Tax Regime Can You…

No, LTA exemption is not available under the new tax regime for FY 2026-27. Last updated: October 2026. If you have opted for the new tax regime, any Leave Travel Allowance received from your employer is fully taxable as salary income, even if you actually travel and submit bills. The exemption under Section 10(5) of the Income Tax Act applies only when you choose the old tax regime. This article explains what LTA is, why employers still include it in salary structures, the practical difference between receiving an allowance and claiming a tax exemption, and how the new regime changes…

For FY 2026-27 (AY 2027-28), a meal card is not tax-exempt under the new tax regime. The paid-voucher exemption that applies to eligible meal cards under the old regime is specifically excluded for employees taxed under the new regime. Last updated: October 2026. Employer-provided food coupons and meal vouchers are therefore treated as taxable perquisites under the applicable rules. Conveyance allowance follows a different path. An allowance granted to meet conveyance expenditure incurred in the performance of official employment. Duties can still qualify for exemption under the new regime, provided the prescribed conditions are satisfied. A fixed allowance for ordinary…

Section 80TTA is not available under the New Tax Regime for FY 2025-26 (AY 2026-27). Section 80TTB is also not available under the New Tax Regime. Taxpayers who opt for the New Regime cannot reduce their taxable income using these deductions on eligible savings-account or deposit interest. The two sections are frequently confused because both offer interest-income deductions under the Old Tax Regime, yet they apply to different taxpayer categories and different types of interest. This guide explains how each section works, what happens to interest income when these deductions cannot be claimed, and why the distinction matters when comparing…

No, HRA exemption is generally not available under the new tax regime for FY 2025-26 (AY 2026-27). Last updated: October 2026. While an employer can still include House Rent Allowance (HRA) in your salary package, you generally cannot claim the tax exemption available under Section 10(13A). This distinction is crucial: an HRA line appearing on your salary slip does not automatically make that amount tax-free. This article explains how HRA is treated under the new regime, how the exemption works under the old regime, and what paying rent means for someone choosing the new tax regime. Discover More About:👇 HRA in New…

Yes, the standard deduction in new tax regime is available for eligible salaried taxpayers and pensioners for FY 2025-26 (AY 2026-27). Under the new regime, the deduction is ₹75,000, which is subtracted from eligible salary or pension income before taxable income is calculated. The provision was increased from ₹50,000 to ₹75,000 and applies from AY 2025-26 onward. This deduction does not require the taxpayer to prove actual expenses. The main benefit is straightforward: a qualifying employee with ₹15 lakh of salary, for example, can reduce salary income by ₹75,000 before moving to the next stage of the tax calculation. Discover More About:👇 New Tax Regime…