Tax exemptions & deductions for Financial Year 2023-24 (as a comparison to FY 2022-23)
Section
10(13A)
Component
House rent
allowance
Description
Least of the below is exempt for Income Tax:
1. Actual HRA earned by the Assessee for the year
2. Rent paid minus 10% of basic salary
3. 40% of the basic or 50% of the basic (in case
of metro cities)
Old
Regime
benefit
New
Regime
benefit
Allowed Not allowed
Remarks
No Change
Section
Components
Description
•
•
24
Loss from Selfoccupied
property
•
•
Interest on borrowed capital is allowed up to INR 2,00,000/- and no other
deduction is allowed.
After construction or purchase of a residential property is completed, the
acquisition or construction of the house should be completed within three
years from the end of the financial year in which the loan was sanctioned.
However 1/5th of pre-construction interest can be added to the current year’s
interest payment. In any case the maximum interest to be claimed in a given
year can’t exceed INR 2,00,000/-.
If capital is borrowed for repairs/renewal/reconstruction then the maximum
amount of deduction is restricted to INR 30,000/-.
Old regime New regime
Remarks
benefit
benefit
Allowed
Not Allowed
No change
Allowed
Not Allowed
No change
Limited to INR 50,000/- subject to fulfillment of all the required criteria as per IT
guidelines.
80EE
•
Additional tax
benefit on home loan •
availed in FY 2016-17 •
•
Value of the house should be INR 50 lakhs or less.
The loan taken for the house must be INR 35 lakhs or less.
The loan must be sanctioned by a Financial Institution or a Housing Finance
Company.
The loan must be sanctioned between 1 April 2016 – 31 March 2017.
As on the date of the sanction of loan, no other house property must be owned by
you.
Section
Components
Additional tax
80EEA benefit on home loan
availed in FY 2019-20
Loss from Let Out
Property
24
Description
Old regime New regime
Remarks
benefit
benefit
Limited to INR 1, 50,000/- fulfillment of all the required criteria as per IT
guidelines.
• Housing loan must be taken from a financial institution or a housing
finance company for buying a residential property.
• Stamp duty value of the house property should be INR 45 lakhs or less.
Allowed
• The individual taxpayer should not be eligible to claim benefit under
the existing Section 80EE.
• The taxpayer should be a first-time home buyer. The taxpayer should
not own any residential house property as on the date of sanction of
the loan.
Not Allowed
Interest benefit Capped to a maximum of INR 2,00,000/- only i.e. total
amount allowed for a property
(Self and let-out both together) is INR 2,00,000/
Allowed
*Available under
special
No Change
conditions
ONLY
Allowed
Allowed
Standard Deduction on To arrive at the loss from let out property, a standard deduction of 30% is
income from rented out allowed from the rental income as municipal taxes.
property
No Change
Changed
*Loss from any of the let-out house property can be claimed to the extent of and get adjusted against the income arrived from such property/ies ONLY. Any balance
of loss left cannot be claimed under any section or get adjusted against any other head of income.
Section
Component
80D Medical Insurance
Description
•
•
INR 25,000 benefit - In case of Individual, Spouse & Children.
Additional benefit of INR 25,000/- in case of parents below 65 years and
INR 50,000 in case of parents above 65 years (Senior citizens).
spent on treatment of handicapped dependents (spouse, children,
Medical treatment for Amount
parents, dependent brothers & sisters)
80DD handicapped
• Limited to INR 75,000 (<=80% disability)
dependent
• INR 1.25 lakh (>80% disability)
Expenditure must be actually incurred by resident assessee on himself or
Medical treatment for dependants (spouse, children, parents, dependent brothers & sisters) for medical
80DDB
treatment of specified disease or ailment. The diseases have been specified in
specified disease
Rule HDD.
•
80E
Interest on education •
loan
•
Donations to certain
80G funds, charitable
institution etc.
Interest paid for the first 8 years on loans taken for higher education such as
engineering/medical etc.
Eligible if loan is availed by the employee for self spouse & children for
pursuing higher education.
Loans availed from financial institution/bank only, are eligible.
The various donations specified in Section 80G are eligible for deduction up to
either 100% or 50% with or without
restriction as provided in Section 80G.
Old regime
New regime
benefit
benefit
Allowed
Not allowed
Allowed
Not allowed
Allowed
Not allowed
Allowed
Not allowed
Allowed
Not allowed
Remarks
No change
No change
No change
No change
No change
Section
80U
Component
Permanent
physical
disability
including
blindness
80CCD Additional NPS
1B
contribution
Tax benefit for
interest
paid on the
80EEB Electric vehicle
(EV) loan
availed in FY
2019-23
Description
•
•
Limited to INR 75,000 (<=80% disability)
INR 1.25 lakh (>80% disability)
Amount invested in National Pension Scheme will be considered up to INR 50,000 only if the
limit available under Section 80C is exhausted.
•
•
•
•
Loan must be taken from a financial institution or a non-banking financial company for
buying an electric vehicle.
Loan should be sanctioned anytime between 1 April 2019 - 31 March 2023.
Limited to INR 1,50,000
An electric vehicle is one that runs solely on an electric motor whose traction energy is
provided by a battery that is installed inside the vehicle. It also has an electric
regenerative braking system that, when applied, transforms the kinetic energy of the
vehicle into electrical energy.
in pension funds is eligible for tax deduction from your income. The tax
Policy - Investment
exemption
available
under 80CCC is limited to the overall allowed amount under 80C i.e.,
80CCC Pension
80CCC
INR 1,50,000
Old regime New regime
Remarks
benefit
benefit
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Section
Component
Description
•
Provident Fund (PF) is deducted from your salary. Both employee & employer
contribute to it.
While employer’s contribution is exempt from tax, your contribution (i.e.,
employee’s contribution) is considered under section 80C.
Old Regime
New Regime
benefit
benefit
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Remarks
80C
Provident Fund (PF) •
80C
Voluntary Provident Employees who have opted for VPF can claim this amount under 80C within the
limit of INR 1,50,000.
Fund (VPF)
80C
Life Insurance
Corpoartion of
India (LIC)
80C
Public Provident
Fund
(PPF)
Amount invested in PPF for self, spouse, children's in current FY can be claimed
under section 80C
Allowed
Not allowed
No change
80C
National Savings
Certificate (NSC)
Amount invested in NSC in current FY is eligible for Section 80C deduction. The
interest accrued every year is liable to tax (i.e., to be included in your taxable
income) but the interest is also deemed to be reinvested and thus eligible for
Section 80C deduction.
Allowed
Not allowed
No change
•
•
Life Insurance premiums paid for self, spouse, children in current FY can also be
included in Section 80C deduction.
Premium paid by you for your parents (father/mother/both) or your in-laws is
not eligible.
Section
Component
Description
Old Regime
New Regime
benefit
benefit
Allowed
Not allowed
No change
Allowed
Not allowed
No change
Remarks
•
80C
Infrastructure
Bonds
(I-Bonds)
80C
Tution Fees (TF)
Tuition Fees paid for up to two children is eligible for deduction u/s 80C.
80C
There are some mutual fund schemes specially created for offering you tax
savings, and these are called Equity Linked Savings Scheme, or ELSS. The
Mutual Fund (MF) investments that you make in ELSS are eligible for deduction under Section
80C.
Allowed
Not allowed
No change
80C
Equity Linked
Savings
Scheme/
Mutual Funds
(ELSS/ MF)
Allowed
Not allowed
No change
•
These bonds are issued by infrastructure companies, and not the
government.
The amount that you invest in these bonds can also be included in
Section 80C deductions.
Amount invested in current FY offering tax benefits under Section 80C.
Section
Component
Description
Old regime
New regime
benefit
benefit
Remarks
80C
Unit Linked Insurance
Plan
ULIP should be taken on your own, spouse or any child's life in current FY.
(ULIP)
Allowed
Not allowed
No change
80C
Sukanya Samriddhi
Scheme
An individual can open Sukanya Samriddhi Scheme account in his/ her daughter's
name. One can get the benefit u/s 80C.
Allowed
Not allowed
No change
80C
5-year bank Fixed
Deposits (FDs)
Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also
entitled for Section 80C benefit.
Allowed
Not allowed
No change
80C
Senior Citizen Savings Amount invested in Senior Citizen Savings Scheme 2004 (SCSS) is eligible under
Scheme 2004 (SCSS) section 80C. Interest income is taxable.
Allowed
Not allowed
No change
80C
5-year Post Office
invested in the five-year POTD only qualifies for tax saving under Section
Time Deposit (POTD) Amount
80C. The interest is entirely taxable.
scheme
Allowed
Not allowed
No change
80C
NABARD rural bonds Amount invested in NABARD Rural Bonds only qualify under Section 80C.
Allowed
Not allowed
No change
Section
Component
Description
Old regime
New regime
benefit
benefit
Remarks
80C
Interest on NSC
NSC interest is taxable under the head “Other Income”.
Allowed
Not allowed
No change
80C
Stamp duty &
registration
charges on house
property
The amount you pay as stamp duty when you buy a house, and the amount you
pay for the registration of the documents of the house can be claimed as
deduction under Section 80C in the year of purchase of the house.
Allowed
Not allowed
No change
80C
Home loan principal
repayment
The principal component of the EMI qualifies for deduction under Section 80C.
The interest component can save you significant income tax under Section 24 of
the Income Tax Act.
Allowed
Not allowed
No change
80TTA
Interest amount earned on savings bank account held with a banking institution/
Interest from savings post office can ONLY be claimed as a tax deduction upto maximum of
INR 10, 000. Interest from fixed/time/recurring deposits is not allowed under
account
this section.
Allowed
Not allowed
No change
80TTB
Interest from deposit
accounts (Senior
citizens only)
Individuals aged 60 years and above can claim interest amount earned on any
kind of deposit account held with a banking institution/ post office ONLY, as a tax
deduction upto maximum of INR 50, 000. Benefit under section 80TTA does not
apply to such individuals.
Allowed
Not allowed
No change