New tax regime exemption list: Section 115BAC of the Income

Section 115BAC of the Income Tax Act introduced a new tax regime offering concessional tax slabs in exchange for fewer deductions and exemptions . Effective from FY 2023-24, this regime is now the default for individuals and Hindu Undivided Families (HUFs). However, taxpayers can still choose the old regime by filing Form 10-IEA before the due date of income tax return. Understanding the new tax regime exemption list is crucial for effective tax planning. Here’s a complete breakdown of what ... Deductions Available Under the New Tax Regime (FY 2025-26, AY 2026-27) The New Tax Regime under Section 115BAC has become the default tax regime from FY 2023-24 onwards. It offers lower tax rates but removes most exemptions and deductions available under the old regime . Under the New Tax Regime , you can enjoy a tax -free income of Rs 7.5 lakhs, which is after you apply the standard deduction and tax rebate. New Tax Regime Exemption List 2025 -26 Allowance Exemption Under New Tax Regime Transport Allowances w.r.t. Person with Disabilities (PwD) Conveyance Allowance Travel/ Tour/ Transfer Compensation A guide to available income tax deductions for AY 2025-26 under various default tax regimes (115BAA, 115BAB, 115BAC, 115BAD, 115BAE) for different taxpayer types.