The finance minister should consider allowing higher standard deduction limit for salaried tax-payers, lower surcharge rates for HNIs and a simpler tax system that reduces confusion, say tax consultants.
You can claim deduction for home loan interest, but only on a rented property, and not as much as under the old regime. Gratuity is tax-exempt up to Rs 20 lakh and leave encashment up to Rs 25 lakh for non-government employees under the new and the old tax regimes.