The Article on " TAX PLANNING FOR FY 2023-24 CONTAINS 5 PARTS
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PART I: MAJOR CHANGES IN TAX RULES FOR FY 2023-24 CLICK HERE
PART 2: TAX RATES / SLABS FOR FY 2023-24 CLICK HERE
PART 3: INCOME TAX REBATES ​ READ THIS PART BELOW ​
PART 4: ESTIMATE YOUR INCOME TAX/ADVANCE TAX CLICK HERE
PART 5: TAX ON RETIREMENT BENEFITS CLICK HERE

PART 3

INCOME TAX REBATES FOR FY 2023-24

TAX REBATES YOU CAN STILL AVAIL IN NEW TAX REGIME

• REBATES THAT CAN BE USED IN NEW TAX REGIME ALSO
  
  1. Rebate under section 87 A for the Resident Indians with below taxable income of Rs 7.00 lakhs while limit is Rs 5.00 lakhs in the old regime
  
  ​2. CONVEYANCE ALLOWANCE , LFC , TRANSFER : Income Tax department amended rules in June 2020 and permitted conveyance allowance , travel allowance , LFC / LTC and transfer allowance etc to be to be under exemption category of newly 115BAC as per Gazette notification dated 26.06.2020 .
  ​ Accordingly following allowances are also exempted under the new tax regime :
  
  a) any allowance granted to meet the cost of travel on tour or on transfer;
  (b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
  (c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit
  
  3. Standard Deduction of Rs 50,000 for salaried persons / pensioners
  

INCOME REBATE UNDER SECTION 87A OF INCOME TAX ACT

SECTION 87A - An assessee, being an individual resident in India, whose total income does not exceed Five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax on his total income with which he is chargeable for assessment year 2022-23 of an amount equal to hundred per cent of such income-tax or an amount of Twelve thousand and five hundred rupees, whichever is less.
The above section is applicable only for residents whose total taxable income for the year is less or equal to Rs 5,00,000.Hence to obtain the above rebate ,you may use other tax rebates under various sections like 80C , 80D , 80E etc to see that your taxable income becomes less than Rs 5,00,000 . The rebate under the section is availble whether you opt for section 115 bac or not .

Further in FY 2023-24 , Rebate under section 87A is enahanced to Rs 7 .00 Lakhs for thosewho opt for new tax regime only .

DEDUCTION UNDER SECTION 80D OF INCOME TAX ACT AVAILABLE UNDER OLD REGIME

Deduction allowed on Health insurance Policies under 80 D is Rs. 50,000/- for senior citizens and up to Rs. 25,000/- for others .For senior citizens, if no insurance amount is paid ,hospital expenditure up to Rs 50,000 is allowed .An assessee can claim additional Rs 50,000 for his/her parents if they are senior citizens and Rs 25,000 in other cases .
In case there is no insurance premium is paid for the senior citizens , medical expenditure incurred on behalf of them can be claimed. Overall claim cannot exceed Rs 1,00,000 . All payments should have been made in any mode other than cash .Cost of preventive health check up up to Rs 5,000 can be claimed within the overall limit and it could have been made in cash also . ​

OTHER TAX REBATES / DEDUCTIONS AVAILABLE UNDER OLD REGIME

1. Standard Deduction of Rs 50,000 allowed for salaried persons / pensioners.

2. Cumulative deduction allowed under Section 80C, 80CCC, and Section 80 CCD for savings/investments, premium for annuity / pension fund is Rs. 1.5 lakh.Now under Section 80CCD, a deduction of upto Rs. 50,000 is allowed over and above the limit of Rs. 1.50 lakh under Section 80C in respect of contributions made to NPS

3. Deductions allowed Rs 50,000 / 1,50,000 under Section 80 EE / 80 EEA for the Interest on Housing loans with certain conditions

4. Deduction allowed under 80 E for interest on education loan taken for pursuing Higher Education .

'higher education' means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or university recognised by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.

5. Deductions allowed Rs 2.00 lakhs under Section 24 for the Interest on Housing loans

6. Deductions allowed Rs 1,50,000 under Section 80 EEB for the Interest on loans taken for purchase of electric vehicles.

7. Interest on savings bank accounts are exempted by tax up to an amount of Rs 10,000 under Section 80TTA and for senior citizens only if they have not claimed under section 80TTB

8. Interest received by a senior citizen on deposits with banks / co-operative societies / post office is exempted up to Rs 50,000 under section 80 TTB .

​If you need any clarifications or you want to know various rebates available under various sections of IT Act , CLICK HERE AND GO TO TAX CHARTS / TABLES AND CLICK ON DEDUCTIONS