Allowance benefit under new tax regime

Under New tax regime, you can claim tax exemption for the following:

1. Transport allowances in case of a specially-abled person.
2. Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
3. Any compensation received to meet the cost of travel on tour or transfer.
4. Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
5. Perquisites for official purposes
6. Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
7. Interest on Home Loan on let-out property (Section 24)
8. Gifts up to Rs 5,000
9. Deduction for employer’s contribution to NPS account [Section 80CCD(2)]
10. Deduction for additional employee cost (Section 80JJA)
11. Budget 2023 introduced a standard deduction of Rs 50,000 under New Tax Regime applicable from FY 2023-24
12. Budget 2023 also introduced deduction under Section 57(iia) of family pension income
13. Budget 2023 further introduced deduction of amount paid or deposited in the Agniveer Corpus Fund under Section 80CCH(2)

The following are some of the major deductions and exemptions you cannot claim under the new tax system:

1. The standard deduction under Section 80TTA/80TTB 
2. Professional tax and entertainment allowance on salaries
3. Leave Travel Allowance (LTA)
4. House Rent Allowance (HRA)
5. Minor child income allowance
6. Helper allowance
7. Children education allowance
8. Other special allowances [Section 10(14)]
9. Interest on housing loan on the self-occupied property or vacant property (Section 24)
10. Chapter VI-A deduction (Section 80C, 80D, 80E and so on, except Section 80CCD(2) and Section 80JJAA)
11. Exemption or deduction for any other perquisites or allowances including food allowance of Rs 50/meal subject to 2 meals a day
12. Employee's (own) contribution to NPS
13. Donation to Political party/trust, etc