Tax-Saving Options for Investors in New Tax Regime

As the financial year 2024-25 ends, taxpayers are exploring investment avenues for tax deductions. The new tax regime under Section 115BAC of the Income Tax Act, 1961, does not allow deductions under 80C, 80D, 80DD, and 80G. However, taxpayers can still claim a few deductions.

1. Section 80CCD (2): Deduction for employer’s contribution to the National Pension System (NPS).
2. Section 80CCH: Deduction for contributions to the Agniveer Corpus Fund.
3. Section 80JJAA: Deduction for hiring new employees (for eligible businesses).

Allowances that can be claimed include:

• Cost of travel on tour or transfer.
• Daily charges for tours or transfers.
• Conveyance expenses if free conveyance is not provided by the employer.
• Transport allowance for disabled employees.

These options help taxpayers save money even under the new tax regime. By understanding and utilizing these deductions and allowances, investors can optimize their tax savings.