Tax Regimes and Exemptions

Copyright © 2024 ADP, Inc.

 New Tax regime

Copyright © 2024 ADP, Inc.

 New Tax Regime Rates
NEW

Income tax slab (Lakhs) Tax rate

0-3 0%
3-7 5%
7 - 10 10%
10 - 12 15%
12 - 15 20%
15 and above 30%

• Section 87A: A tax rebate of Rs.25,000 from tax calculated will be available for people having an annual income up to Rs.7 lakh
u/s 87A

• 4% ‘Health and Education Cess’.

• Surcharge rates are as below:

• 10% for income exceeding Rs.50 lakhs and 1 crore

• 15% Rs.1 crore – 2 crore

• 25% Rs.2 crore – 5 crore

• 25% Rs.5 crore and above

Copyright © 2024 ADP, Inc.

 Old Tax regime

Copyright © 2024 ADP, Inc.

 Old Tax Regime Rates
OLD

Income tax slab (Lakhs) Tax rate Income tax slab (Lakhs) Tax rate Income tax slab (Lakhs) Tax rate

0 - 2.5 0% 0-3 0% 0-5 0%

2.5 - 5 5% 3-5 5%
5 - 10 20%
5 to 10 20% 5 - 10 20%

10 and above 30% 10 and above 30% 10 and above 30%

Individuals Individuals Individuals

below 60 Years between 60 to 80 Years above 80 Years

• Section 87A: A tax rebate of Rs.12,500 from tax calculated will be available for people having an annual income up to Rs.5 lakh
u/s 87A
• 4% ‘Health and Education Cess’.
• Surcharge rates are as below:
• 10% for income exceeding Rs.50 lakhs and 1 crore
• 15% Rs.1 crore – 2 crore
• 25% Rs.2 crore – 5 crore
• 37% Rs.5 crore and above

Copyright © 2024 ADP, Inc.

 Applicable for Old tax

SECTION 10 (13A) Regime

House Rent Allowance Exemption

Non-Applicability of Exemption if:
Allowance specifically • House owned by employee
granted to meet • Not incurred expenses for Rent
expenditure actually
Exempt to extent of limit
incurred on payment of rent
for residential Documents Required from Employees:
accommodation occupied
• Proof of HRA - Rent receipt or (Agreement copy and
rent receipt)
Where rent paid exceeds < 1,00,000 per annum –
*PAN card , name and address of all the landlord
(irrespective of number of landlords)

Mumbai / Kolkata / Delhi /

Other Cities
Chennai (Residential location) Note: As per Form 12BB , in case HRA claim exceeds < 1
lakh: PAN is mandatory.
Allowance actually received Allowance actually received Name and address details of the landlord are mandatory.
(No declaration would be entertained)
Rent paid less 10% of salary Rent paid less 10% of salary http://www.incometaxindia.gov.in/communications/
notification/notification30_2016.pdf

50% of salary 40% of salary

Note : Here salary means Basic + DA

Copyright © 2024 ADP, Inc.
 Applicable for Old tax

Section 80GG Regime

Rent Paid

Assessee can claim rent paid under this If the following conditions are complied
section up to lower of the three: with:

• Rent paid minus 10% of the adjusted • No HRA component in salary structure
total income.
• Neither the assesse, spouse, or minor
• 5,000 per month child should not own any house in their
names. Also, the assesse must not own
• 25% of the adjusted total income any other place or accommodation in the
occupation of the assesse.

Copyright © 2024 ADP, Inc.

 Applicable for Old &

SECTION 24 New tax Regime

Deductions – Loss from House Property (Interest Portion)

PROPERTY Note 1:

• Interest for Self Occupied property:

• Maximum of < 2 Lakh interest deduction can be claimed
only if below condition are complied with:
Repaired / Renewed /
Acquired / Constructed • Acquired or constructed on or after 1st April 1999.
Reconstructed
• Acquired or construction completed
• within 5 years of financial year from the end of
• Financial Year in which capital is borrowed.
• (If two (2) of the above conditions are not satisfied,
Let out Self occupied Self occupied Let out • amount allowed as deduction of interest is <30,000)
• Any 2 property can be claimed as “Self Occupied “
Property.
Up to
Up to maximum Up to maximum
maximum of Maximum of INR
of INR 2.0 lakh of INR 2.0 lakh
INR 2.0 lakh 30,000/- Note 2:
(See Note 2) (See Note 2)
(See Note 1 & 2)
From FY 2019-20, Overall Interest on house property
(irrespective whether the property is
Let Occupied property or self occupied) the maximum loss
‘Self occupied’ here means: which can be adjusted against any other source of income
House occupied of employee for his own residence. And the same is not is < 2 lakh. The unclaimed loss can be carry forwarded to 8
used for any business or profession or other business purposes. years and can be adjusted only against income from house
property.

Copyright © 2024 ADP, Inc.

 Applicable for Old &

Sample Calculation New tax Regime

Type of House Property Self Occupied Let Out

Gross annual Value NIL 240000

Less: Municipal Taxes or Taxes

Not Applicable -10000
paid to local authorities

Net Annual Value(NAV) Nil 230000

Less: Standard Deduction Not Applicable -69000

Less: Interest on Housing Loan (100000.00) (500000.00)

Income from House Property (100000.00) (339000.00)

200000
Total Loss which can be adjusted
(Balance 239000 of loss would be adjusted for next 8 years)
Copyright © 2024 ADP, Inc.
 Applicable for Old tax

SECTION 80EE Regime

Deductions for Interest paid on First House

Individuals can claim an additional interest of <50,000 in case of

self occupied property, if the following conditions are fulfilled

Loan sanction date as well as

First time home buyer in FY
possession date Loan sanction amount Value of house property
2016-17 i.e. assesse doesn’t
must be in between doesn’t exceed doesn’t exceed
own any house property on the
1st April, 2016 to <35,00,000. <50,00,000.
loan sanction date.
31st March, 2017.

Note: The section claim of 80EE is over and above DOCUMENT REQUIRED
Section 24 interest claim. Interest payment receipt declaration stating that
no loan is pending and that this is the first house.

Copyright © 2024 ADP, Inc.

 Applicable for Old tax

SECTION 80EEA Regime

Deductions for Interest paid on First House

Individuals can claim an additional interest of <150,000 in case of

self occupied property, if the following conditions are fulfilled

If an individual has taken loan The value of the house Individual should not own any
in between 1 April property should not exceed residential property on the
2019 and 31 March 2021 INR 45,00,000 date of sanction of loan

Note: The section claim of 80EEA is over and DOCUMENT REQUIRED

above Section 24 interest claim. Interest payment receipt declaration stating that
no loan is pending and that this is the first house.

Copyright © 2024 ADP, Inc.

 BEST PRATICES
Home Loan

• Only the owner can claim such house property

deduction. So please ensure you are owner or co-owner.

• Ensure all property details submitted are updated and

for the current financial year

• For claiming 80EE & 80EEA, please submit stamp

valuation of the property

• For Let out , ensure you show rental income

• Loan taken from relative or friend, only interest under

section 24 is allowed.

Copyright © 2024 ADP, Inc.

 BEST PRATICES
HRA

• Only 1 property is allowed and you should be tenant as

per agreement.

• Ensure PAN details submitted by landlord is valid

• Property rented from relative or friend, ensure the PAN

details are properly submitted.

• Revenue stamp , please check company policy.

Copyright © 2024 ADP, Inc.

 Provident Fund LIC & Insurance

NSC, 5 Year Section 80 C Mutual Fund &

Deposit & Senior Rs. 1.5 Lakh ELSS
Citizen

Sukanya Samriddhi &

Housing Loan Principal
Tuition Fees

Investment Slip
Copyright © 2024 ADP, Inc.
 SECTION 10 (5)
Leave Travel Allowance

Documents Required from Employees:

• For Rail travel: Rail Travel Invoice
• For Airfare: Invoice , Boarding pass
• For Road travel:
• Public transport : Bus Ticket

Copyright © 2024 ADP, Inc.

 NPS Exemption

01 02 03
80CCD(1) 80CCD(2) 80CCD(1B)

The amount is to be contributed The amount is to be contributed The amount is to be contributed

by employee @10% of Basic + by employer @10% of Basic + by any individual. This
DA, Restricted to RS.1.5 Lac DA. This contribution is over allowable contribution is of
along with other 80C allowable and above Rs.1.5 Lac Exemption RS.50,000 which is over and
deduction. under 80C and 80CCD(1) above Rs.1.5 Lac exemption
allowable deduction. under 80C and 80CCD(1)
allowable deduction.

Copyright © 2024 ADP, Inc. *Applicable exemption for old tax regime
 Section 80D
Deductions Health Insurance Premium Paid, etc.

Self, spouse Not Senior Premium

and kid Citizen paid receipt
Rs.5,000

Rs.25,000

Premium Preventive
Insurance
Section 80D paid Health Check up
coverage
Receipt receipt

Rs.25,000 Rs.50,000

Not covered
Senior
Parents under any Medical bills
Citizen
insurance

Copyright © 2024 ADP, Inc.

 80DD & 80U : Disability 80E: Education loan 80EEB : EV Vehicle loan
Rs. 75,000 or 1.25 Lakh 100% Interest Payment Rs. 1.5 Lakh

• Medical Certificate • Loan repayment schedule • RC book

providing the below details
• Loan installment payment • Vehicle Loan Agreement.
• Name receipt showing interest
• Loan taken before 31st
and principal.
• Disability % March 2023.
• Relationship with the
employee (80DD)

Copyright © 2024 ADP, Inc.

 TCS and TDS Claim

New tax form “Form 12BAA”.

Copyright © 2024 ADP, Inc.

 Proof Submission, Simplified

Copyright © 2024 ADP, Inc.

 Investment Declaration & Proof Submission

Declaration and proof submission = No Impact on tax

Proof mode

Take Take Take Take Take Take

Take Take
Take Home Home Home Home Home Home Take Take Take
Home Home
Home Home Home Home
Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax

Provide documentation to support

your claims.
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Declared and proof not submitted = Impact on tax

Proof mode

Take
Home Take Take Take Take
Take Take
Home Home Home Home Take
Home Take Take Home
Tax Home Take Tax
Tax Tax Home Home
Tax Tax Home
Tax Tax Tax Tax
Start investing if you haven't Tax Tax
already and obtain the necessary
documents as proof.

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Copyright © 2024 ADP, Inc.

 How your tax is calculated

Declaration mode Proof mode

(A) Income from Salary 1,000,000

(B) LIC declared 1,50,000 (B) Approved LIC proofs 50,000

(C) PPF 0 (C) Approved PPF proofs 50,000

Net Taxable Income ( A-B-C) 8,50,000 Net Taxable Income ( A-B-C) 9,00,000

Tax due 82,500 Tax due 92,500

Tax per month 6, 875 Tax per month 7,708

Copyright © 2024 ADP, Inc.

 Declaring and uploading proofs on the ESS portal

Add components
01 that you 03 Check 05
would want to approval
declare status
02 04

Choose Furnish Query

your regime proof period

Copyright © 2024 ADP, Inc.

 Actuals & Projection

• HRA (Section 10(13A)

Projections allowed for • Medical insurance (Section 80D)
• LIC (Section 80C)
these investment schemes: • ELSS or Mutual (Section 80C)
• ULIP (Section 80C)

Fresh Investments where date of commencement is

Valid proof document
the same year.

If premium not paid for the initial 9 months, then the proof
Invalid proof document
document will be treated as invalid.

Copyright © 2024 ADP, Inc.

 Best Practices

• Documents must not be hazy

• The date must be within the financial year from April toMarch

• Properly signed and stamped as per norms

• Proof of submission is mandatory. Declaration or bank statement won't be

entertained.

• Check rejection remarks

• Check Mock tax slip

• Check Tax computation

• Check Form 26AS

Copyright © 2024 ADP, Inc.

 Thank you

Copyright © 2024 ADP, Inc.