• Blog
  • Calculators
  • Quiz
  • Sample Financial Plan
MoneyChai
  • Blog
  • Forum
  • Android App
  • Blog
  • Calculators
  • Quiz
  • Sample Financial Plan

New Tax Regime – Deductions You Can Not Claim (section 115BAC)

By:MoneyChai Tax Last Updated: 1 Feb, 2020

First of all, let me tell you that the new tax regime is optional. An individual can either opt for old tax regime or new tax regime. Under old tax regime, an individual can still opt for all the tax deduction which are available for FY 2019-20. But it is not the same case with new tax regime, you can not claim deductions under most of the sections which were previously available.

So, under new tax regime in Budget 2020, which are the deductions which you can not claim. Here is a list of deductions which a normal salaried employee claim in his/her ITR . The list is not exhaustive but I have tried to cover most of it for the salaried employee

1. Section 80C

  1. Provident Fund (PF) and Voluntary Provident Fund (VPF)
  2. Public Provident Fund (PPF)
  3. National Savings Certificate (NSC)
  4. Life Insurance Premium (Though I feel, there will be a new section introduced for claiming life insurance premium in new tax regime)
  5. NPS Employee contribution can not be claimed (NPS employer contribution would be eligible for deduction)
  6. Equity Linked Savings Scheme Mutual Funds (ELSS)
  7. 5-Year Bank Deposits5-Year Post Office Time Deposits
  8. Senior Citizens Savings Scheme (SCSS)
  9. Home Loan Principal Repayment
  10. Stamp Duty and Registration Charges
  11. Child Education Expenses(Tution Fee)

2. Section 80D Deduction

  1. Health Insurance Premium for you and your family
  2. Health Insurance Premium for your parents

3. Leave Travel Allowance

4. House Rent Allownace

5. Section 24 – Home loan interest under Section 24 can not be claimed if you opt for new tax regime.

6. Section 80CCD- contribution of 50,000 which was eligible for additional tax deduction in NPS can not be claimed.

 Section 80DD Deduction

Section 80DD exemption is for the amount spent on dependants like spouse, children, parents, brothers or sisters. This also can not be claimed.

Section 80DDB Deduction for AY 2019-20

You can also claim exemption under section 80DDB, if you are spending on treatment for certain specified ailments notified by the government.

The following are the ailments which will qualify for this exemption:
1. AIDS
2. Renal Failure
3. Cancer
4. Haematological Disorder
5. Neurological Issues

This also can not be claimed.

Other Sections

80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC can also not be claimed under deduction

New or Old – Which tax Regime should I choose?

You need to choose it cautiously. If you are in 5% bracket, it would not make much difference, whether you choose the old regime or new one.

For individuals claiming deductions like 80C, 80D, 80 CCD, HRA, Section 24, the old regime seems to be better..

The new tax regime looks better for the people who claim less deductions. Again its on case to case basis.

12 Shares
Share12
Tweet
Share
WhatsApp

Filed Under: Tax

MoneyChai

Hi, I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country. I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners. If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

You May Also Like

  • Tax on PF Interest – New PF Rules 2021 with Example

    Tax on PF Interest – New PF Rules 2021 with Example

  • Deductions under Section 80C for FY 2020-21 – Tax Benefits

    Deductions under Section 80C for FY 2020-21 – Tax Benefits

  • Deduction under Section 80D – Tax Benefits for 2020-21

    Deduction under Section 80D – Tax Benefits for 2020-21

  • Should You Purchase Capital Gain Bonds from NHAI & REC to Save Tax?

    Should You Purchase Capital Gain Bonds from NHAI & REC to Save Tax?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Retirement
  • Retirement
  • PF Accumulation at Retirement
  • NPER
  • Child`s Goals
  • Higher Education
  • Marriage
  • Investments
  • HRA
  • PPF Accumulation
  • PMVVY
  • SIP
  • Lumpsum Investment
  • Fixed Deposit
  • Recurring Deposit
  • Present Value of Money
  • Future Value of Money
  • Increasing SIP calculator
  • Compound Annual Growth Rate
  • Monthly SIP Required for Any Goal
  • SCSS
  • Term Insurance
  • Life Insurance Need

Newsletter

Popular posts

  • House Rent Allowance Rules and Regulations – HRA 2020-21

  • Gratuity Formula – Rules, Limit, Eligibility & Calculation 2020

  • Gift Tax Rate in India – Limits, Exemptions and Rules 2020-21

  • NRI PPF Rules – Account and Notification 2019

  • GST Rate on Real Estate – Under Construction & Completed Property

  • Should I Surrender My Jeevan Anand Policy from LIC?

  • Cost Inflation Index Calculation for FY 2020-21 & AY 2021-22

  • Early Retirement in India -How to Retire Early like Suresh ?

  • Bank Locker Rules and Regulations – Charges & RBI Guidelines

  • Financial Advisor Fees Structure, Cost & Charges in India

Recent Posts

  • Is It Wise to Mix Insurance and Investment – Never

  • Types of Risk in Debt Mutual Funds –Interest Rate, Credit and Liquidity

  • Tax on PF Interest – New PF Rules 2021 with Example

  • Calculating Returns And Lazy You

  • Deductions under Section 80C for FY 2020-21 – Tax Benefits

  • ICICI Pru Guaranteed Income for Tomorrow Review – 4%-5%Returns

  • Deduction under Section 80D – Tax Benefits for 2020-21

  • LIC Bima Jyoti Review, Returns and Tax – New LIC Plan 860 Details

  • Should You Purchase Capital Gain Bonds from NHAI & REC to Save Tax?

  • Chemist Vs Biased Doctor Vs Unbiased Doctor

Footer

About Us

Hi,
I am Ajay Pruthi, an alumnus of NIT Jalandhar and K.J. Somaiya Institute of Management Studies. I have over 10 years of experience in the field of insurance and have worked with top two private insurance players in the country.

I am a Certified Financial Planner and currently working as a Paraplanner with Mr. Melvin Joseph, founder of Finvin Financial Planners.

If you liked my blog and want to discuss further on comprehensive fee only financial planning, feel free to get in touch by visiting Finvin Financial Planners.

 

Newsletter

Help Links

  • Contact Us
  • Write for moneychai
  • Sitemap
  • Disclaimer
  • Advertise
  • Archive

Categories

  • Banking
  • Financial Planning
  • Insurance
  • Investment
  • Mutual Funds
  • Retirement
  • Tax
  • Chai Pe Charcha
  • Blog
  • Forum
  • Android App
Copyright ©2017 MoneyChai. Designed by Mount Moriah Infotechs