Financial year 2023-24 onwards, the new regime is set to be the default tax system. Under the revised new tax regime, the individual will forego 70 deductions and tax exemptions. House rent allowance (HRA) tax benefit is one of those. HRA is available only to salaried individuals who are planning to opt for old tax regime. Watch Business Today s Visual Story to know more about tax exemptions and deductions under the new tax tegime.
The new tax regime provides a lower tax rate but removes several deductions that are otherwise available under the old tax regime. Here's what is permitted and what is not.
Making the wrong decision can significantly affect your take-home income. If you're struggling to decide between the two options, the following ten tips can assist you in making the correct choice.