For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable.
HRA tax exemption is not available under the new tax regime.
An individual can claim tax exemption on HRA, LTA, etc., if the old tax regime is chosen at the time of filing the ITR.
From FY 2023-24, the new tax regime has become the default tax regime. This means that if an individual does not select any tax regime for TDS on salary, the deduction would be done on the basis of the income tax slabs under the new tax regime.
Employers' contributions to their employee's NPS and EPF and superannuation accounts are applicable for tax exemption.
Taxpayers receiving interest from their Employees' Provident Fund account can claim tax exemptions on that interest, given the latter is not above 9.5%.
Under the new tax regime, taxpayers receiving interest on their Post Office Savings Account can claim exemptions up to Rs 3,500 and Rs 7,000 in the case of individual and joint accounts as per Section 10(15)(i).
Interests and maturity amounts received from the Sukanya Samriddhi Account are exempted from being taxed under the new tax regime.
The old tax regime allows an individual to save income tax via various deductions and tax exemptions such as sections 80C, 80D, 80CCD(1b), 80TTA, HRA, and LTA.
A salaried individual can avail of a standard deduction of Rs 50,000 from salary income.