Just look at the list of exemptions and deductions that go out if you opt for the new regime:
· Standard Deduction
· Leave Travel Concession
· House Rent Allowance
· Deduction under Section 80C i.e. equity linked savings scheme (ELSS), provident fund (PF), insurance premium, school fees, and principal repayment on housing loan.
· Deductions under 80D for medical insurance and 80G for donations
· Interest on Housing Loan
· Food vouchers Rs 50 per meal
· However, deductions such as per diems (daily allowance on travel) and employer’s contribution to National Pension System are still available
The Finance Minister, in her speech mentioned that a person earning Rs 15 lakh in year and not availing any deduction will pay only Rs 1.95 lakh of tax, as compared to Rs 2.73 lakh. This is a saving of Rs 78,000.
However, typically a salaried employee will be availing of a flat standard deduction of Rs 50,000. Plus, he or she will also have an HRA component, on which tax exemption can be availed if rent is paid. If the taxpayer is not on rent and has availed of a housing loan on self-occupied property, he or she can avail of principal as deduction from gross total income as well as tax benefits on interest paid. Even on rented property, interest can be set off against rental incomeand loss if any can be adjusted against any other head of income.