Income Tax Returns: Exemptions and deductions that are still allowed under new tax regime

As of the new tax regime, which became the default starting from Budget 2020, taxpayers must actively opt for the old tax regime to benefit from deductions and exemptions. The deadline to file your income tax return for FY 2023-24 is July 31. While the new regime offers lower tax rates, it eliminates many deductions, though a few remain, such as the ₹50,000 standard deduction and NPS contributions. However, exemptions like HRA, LTA, and medical insurance premiums are excluded. Taxpayers must inform their employer about their chosen regime to avoid defaulting to the new one.