Tax exemptions & deductions for Financial Year 2023-24 (as a comparison to FY 2022-23)

Old New Remarks

Section Component Description
Regime Regime
benefit benefit
Least of the below is exempt for Income Tax:
1. Actual HRA earned by the Assessee for the year
House rent No Change
10(13A) 2. Rent paid minus 10% of basic salary Allowed Not allowed
allowance
3. 40% of the basic or 50% of the basic (in case
of metro cities)
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Section Components Description Remarks
benefit benefit

• 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
Loss from Self- years from the end of the financial year in which the loan was sanctioned.
24 occupied Allowed Not Allowed No change
property • 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/-.

Limited to INR 50,000/- subject to fulfillment of all the required criteria as per IT
guidelines.

Additional tax • Value of the house should be INR 50 lakhs or less.

80EE benefit on home loan • The loan taken for the house must be INR 35 lakhs or less.
Allowed Not Allowed No change
availed in FY 2016-17 • 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.
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Section Components Description Remarks
benefit benefit

Limited to INR 1, 50,000/- fulfillment of all the required criteria as per IT

Additional tax
80EEA benefit on home loan
availed in FY 2019-20
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 Not Allowed No Change
• 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.

*Available under
Interest benefit Capped to a maximum of INR 2,00,000/- only i.e. total special
Loss from Let Out
amount allowed for a property Allowed conditions No Change
Property
(Self and let-out both together) is INR 2,00,000/
24 ONLY

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. Allowed Allowed Changed
property

*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.
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Section Component Description Remarks
benefit benefit
• INR 25,000 benefit - In case of Individual, Spouse & Children.
80D Medical Insurance • Additional benefit of INR 25,000/- in case of parents below 65 years and No change
INR 50,000 in case of parents above 65 years (Senior citizens). Allowed Not allowed

Medical treatment for Amount spent on treatment of handicapped dependents (spouse, children,
parents, dependent brothers & sisters)
80DD handicapped • Limited to INR 75,000 (<=80% disability) No change
dependent Allowed Not allowed
• 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 No change
specified disease Allowed Not allowed
Rule HDD.

• Interest paid for the first 8 years on loans taken for higher education such as
engineering/medical etc.
Interest on education • Eligible if loan is availed by the employee for self spouse & children for
80E No change
loan Allowed Not allowed
pursuing higher education.
• Loans availed from financial institution/bank only, are eligible.

Donations to certain The various donations specified in Section 80G are eligible for deduction up to
80G funds, charitable either 100% or 50% with or without No change
institution etc. restriction as provided in Section 80G. Allowed Not allowed
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Section Component Description Remarks
benefit benefit
Permanent
physical
disability • Limited to INR 75,000 (<=80% disability)
80U Allowed Not allowed No change
• INR 1.25 lakh (>80% disability)
including
blindness

80CCD Additional NPS Amount invested in National Pension Scheme will be considered up to INR 50,000 only if the
1B contribution limit available under Section 80C is exhausted. Allowed Not allowed No change

• Loan must be taken from a financial institution or a non-banking financial company for
Tax benefit for buying an electric vehicle.
interest • Loan should be sanctioned anytime between 1 April 2019 - 31 March 2023.
paid on the • Limited to INR 1,50,000
80EEB Electric vehicle • An electric vehicle is one that runs solely on an electric motor whose traction energy is Allowed Not allowed No change
(EV) loan provided by a battery that is installed inside the vehicle. It also has an electric
availed in FY regenerative braking system that, when applied, transforms the kinetic energy of the
2019-23 vehicle into electrical energy.

80CCC Pension Policy - Investment

exemption
in pension funds is eligible for tax deduction from your income. The tax
available under 80CCC is limited to the overall allowed amount under 80C i.e.,
80CCC Allowed Not allowed No change
INR 1,50,000
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Section Component Description Remarks
benefit benefit

• Provident Fund (PF) is deducted from your salary. Both employee & employer
contribute to it.
80C Provident Fund (PF) • While employer’s contribution is exempt from tax, your contribution (i.e., Allowed Not allowed No change
employee’s contribution) is considered under section 80C.

Voluntary Provident Employees who have opted for VPF can claim this amount under 80C within the
80C limit of INR 1,50,000. Allowed Not allowed No change
Fund (VPF)

Life Insurance • Life Insurance premiums paid for self, spouse, children in current FY can also be
included in Section 80C deduction.
80C Corpoartion of Allowed Not allowed No change
• Premium paid by you for your parents (father/mother/both) or your in-laws is
India (LIC)
not eligible.

Public Provident
80C Fund Amount invested in PPF for self, spouse, children's in current FY can be claimed
under section 80C Allowed Not allowed No change
(PPF)

Amount invested in NSC in current FY is eligible for Section 80C deduction. The
National Savings interest accrued every year is liable to tax (i.e., to be included in your taxable
80C income) but the interest is also deemed to be reinvested and thus eligible for Allowed Not allowed No change
Certificate (NSC)
Section 80C deduction.
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Section Component Description Remarks
benefit benefit

Infrastructure • These bonds are issued by infrastructure companies, and not the
Bonds government.
80C • The amount that you invest in these bonds can also be included in Allowed Not allowed No change
(I-Bonds) Section 80C deductions.

80C Tution Fees (TF) Tuition Fees paid for up to two children is eligible for deduction u/s 80C. Allowed Not allowed No change

There are some mutual fund schemes specially created for offering you tax
savings, and these are called Equity Linked Savings Scheme, or ELSS. The
80C Mutual Fund (MF) investments that you make in ELSS are eligible for deduction under Section Allowed Not allowed No change
80C.

Equity Linked
Savings
80C Scheme/ Amount invested in current FY offering tax benefits under Section 80C. Allowed Not allowed No change
Mutual Funds
(ELSS/ MF)
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Section Component Description Remarks
benefit benefit

Unit Linked Insurance

80C Plan ULIP should be taken on your own, spouse or any child's life in current FY. Allowed Not allowed No change
(ULIP)

80C Sukanya Samriddhi An individual can open Sukanya Samriddhi Scheme account in his/ her daughter's
Scheme name. One can get the benefit u/s 80C. Allowed Not allowed No change

80C 5-year bank Fixed Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also
Deposits (FDs) 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

5-year Post Office

80C Time Deposit (POTD) Amount invested in the five-year POTD only qualifies for tax saving under Section
80C. The interest is entirely taxable. Allowed Not allowed No change
scheme

80C NABARD rural bonds Amount invested in NABARD Rural Bonds only qualify under Section 80C. Allowed Not allowed No change
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Section Component Description Remarks
benefit benefit

80C Interest on NSC NSC interest is taxable under the head “Other Income”. Allowed Not allowed No change

Stamp duty &

registration The amount you pay as stamp duty when you buy a house, and the amount you
80C charges on house pay for the registration of the documents of the house can be claimed as Allowed Not allowed No change
deduction under Section 80C in the year of purchase of the house.
property

Home loan principal The principal component of the EMI qualifies for deduction under Section 80C.
80C The interest component can save you significant income tax under Section 24 of Allowed Not allowed No change
repayment the Income Tax Act.

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
80TTA INR 10, 000. Interest from fixed/time/recurring deposits is not allowed under Allowed Not allowed No change
account
this section.

Interest from deposit Individuals aged 60 years and above can claim interest amount earned on any
accounts (Senior kind of deposit account held with a banking institution/ post office ONLY, as a tax
80TTB deduction upto maximum of INR 50, 000. Benefit under section 80TTA does not Allowed Not allowed No change
citizens only) apply to such individuals.