Full list of Exemption to be forgone in New Optional Tax Regime

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Finance minister announces a new regime of tax slab which is optional but if you choose this new regime then you have to forgo some ex...

list of exemption not allowed in new tax regime

Finance minister announces a new regime of tax slab which is optional but if you choose this new regime then you have to forgo some exemption in which major exemption are Chapter VI exemptions, home loan interest and the standard deduction etc. This list of exemption is not allowed while Calculation of tax on total income if the assessee chooses new income tax slab rate.

Also Read: Budget 2020 Income Tax Slab Rates

Individual/ HUF as per section 115BAC List of Exemptions that will be forgone if you choose optional new regime of tax are as follows:
  1. Leave Travel Concession as per Clause (5) of Section 10
  2. House Rent Allowance (HRA) as per Clause (13A) of Section 10
  3. Daily Allowance or any Constituency allowance Received by any person by reason of his membership of parliament or of any state legislature or of any committee thereof as stated in Clause (17) of Section 10.
  4. Income Earned by a minor child in accordance with section 64 of the Income Tax Act as per Clause (32) of Section 10.
  5. Exemption Given to units situated in SEZ under Section 10AA.
  6. Standard Deduction of Rs 50000/- given under section 16.
  7. Housing Loan interest in Clause (b) of section 24 in respect of Self-occupied property or Vacant property referred to in subsection (2) of section 23. [Losses under the head Income from House Property shall not be allowed to set off with any other head of income and it should be carried forward to next year]
  8. Additional Depreciation of 20% for plant and machinery engaged in the production in the year they were purchased as given in Section 32(1)(iia).
  9. Investment in new plant and machinery as given in Section 32AD.
  10. Deduction for the assessee who is engaged in the business of growing or manufacturing of Coffee/tea/rubber as per section 33AB.
  11. Deduction for the assessee who is engaged in the business of prospecting for/extraction of/production of petroleum, natural gas or both, Provision relating to Site restoration fund as given in Section 33ABA.
  12. Deduction for the donation given to the company for scientific research or expenditure for scientific research as given in Section 35(1)(ii), Section 35(1)(iia), Section 35(1)(iii) or Section 35(2AA).
  13. The deduction is given for Investment-linked incentive to the taxpayers with respect to capital expenditure for specified business as per Section 35AD.
  14. Deduction for Expenditure on agricultural extension project as per section 35CCC.
  15. Deduction from family pension received as per Section 57(iia)
  16. Deduction under Chapter VI-A in which:
    1. Section 80C: For investments in Life Insurance, Tax saving Mutual Funds, PPF and other saving instruments etc.
    2. Section 80CCC: Deduction for the contribution made to specified Pension Funds
    3. Section 80CCD(1): Deduction for contributions made to pension scheme of Central Government
    4. Section 80CCD(1B): Deduction for the deposit under a national pension scheme notified by Central Government (NPS)
    5. Section 80CCG: Amount invested in listed shares.
    6. Section 80D: Amount invested in Health Insurance/ Mediclaim.
    7. Section 80DD: Expenditure made for the medical treatment of a dependent.
    8. Section 80DDB: Expenditure incurred for medical treatment of specified diseases
    9. Section 80E: Amount of Interest paid on Educational Loan
    10. Section 80EE: Interest on loan for purchasing a residential house property, sanctioned during FY 2016-17
    11. Section 80EEA: Interest on loan for purchasing residential house property, sanctioned during FY 2019-20
    12. Section 80EEB: Interest on loan for purchasing Electric Vehicle, sanctioned during 1st April 2019 and 31st March 2023
    13. Section 80G: Deduction for donations made to certain specified funds, charitable institutions registered with Income Tax.
    14. Section 80GG: Rent paid for residential accommodation
    15. Section 80GGA: Deduction for donation made for scientific research or rural development
    16. Section 80GGC: Donation made to political parties.
    17. Section 80IA: Deduction for power sector
    18. Section 80IAB: Deduction to an undertaking engaged in the development of SEZ.
    19. Section 80IAC: Deduction for small startups
    20. Section 80IB: DEduction in profit and gains from certain industrial undertaking other than infrastructure development undertakings.
    21. Section 80IBA: Deduction to an assessee engaged in the business of developing and building housing projects.
    22. Section 80QQB: Royalty income on books
    23. Section 80RRB: Royalty of patents
    24. Section 80TTA: Interest on Savings Bank accounts
    25. Section 80TTB: Interest on deposits with Banks, Co-operative banks, Post Offices(w.e.f. 01.04.2018)
    26. Section 80U: Persons with Disability

full list of Exemption to be forgone in new tax regime
Some Deduction under chapter VI are available which are as follows:
  1. Section 80CCD(2): Deduction for employer's contributions to pension scheme notified by Central Government
  2. Section 80JJAA:
  3. Section 80LA: The deduction for the unit in the International Financial Services Centre as referred to in 80LA(1A), which has exercised an option under sub-section (5) of section 80LA as given in section 115BAC
Note: You can See the Above deduction given in Page no. 30 of Finance Bill image of the same is attached in the post.

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Saral Tax India: Full list of Exemption to be forgone in New Optional Tax Regime
Full list of Exemption to be forgone in New Optional Tax Regime
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