Filing Return For FY 2022-23? Here Is How To Claim Income Tax Deductions Under The New Regime

The last date to fill the Income Tax Return (ITR) for the financial year 2022-23 is July 31, 2023. As the return filing period has started, people are running after to claim income tax deductions.

However, you must know you can still file the ITR under the old regime. A salaried person has to fill out the ITR 1 form before filing their income tax returns. It has eligibility criteria that are mentioned below.

We spoke to CA Deksha Gupta, partner at a firm in Ghaziabad, to bring you options to save on income tax under the new regime.

CA Gupta said there are limited options for a salaried person to save tax under the new regime. However, if the taxpayer has a total income below ₹5 lakh, rebate u/s 87A is available, which is maximum up to ₹12,500.

CA Gupta said there are limited options for a salaried person to save tax under the new regime. Here are other options available to save tax,

Contribution To National Pension Scheme (NPS)

As defined under the Income Tax Act, a salaried employee can claim a deduction in their income if the contribution to the National Pension Scheme (NPS). is made by Central Government, State Government or Other Employer. This falls under Section 80CCD(2).

The maximum deductions permitted under this section are 10%, if the contribution is made by any other employer, and 14% in case the contribution is made by Central Government or State Government. However, the maximum deduction under sec 80CCD(2) taxpayers can claim is ₹50,000.

Interest In Home Loan

Under the new regime, taxpayers can claim benefits if they let out the property and pay interest on the house loan.

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Voluntary Retirement

If an individual has opted for voluntary retirement, they are eligible for tax exemption extending up to ₹5 lakhs. The limit is the same in the new as well as the old regime.

Gratuity Amount

If an employee received a lump-sum amount of gratuity, they can claim tax benefits on it. For non-government employees, the deductions extend to ₹20 lahks for a lifetime.

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Leave Encashment

If you have opted for leave encashment, you can claim benefits of up to ₹3 lakhs under the tax regime.

There are more tax-saving options available in the older regime (Old Tax Regime vs New Tax Regime), including deductions for medical insurance (under Section 80D) up to ₹25,000 and for LIC and other investments (under Section 80C) up to ₹1,50,000.

If you want to fill out the ITR under the old regime, you can fill ITR-1 form by July 31, 2023. The eligibility criteria for it include,

• Total income must not exceed ₹50 lakhs in the financial year
• Income is from salary, one house property, family pension income, agricultural income (up to ₹50,000) and other sources that include - interest from saving accounts, deposits, Income Tax Refund and enhanced compensation among other interest income and family pension.
• If you do not fall under these criteria, there are ITR forms that you can fill out. However, you must do it before the last date of filing the Income Tax Return.

Stay tuned to HerZindagi for more updates.