Key Points
However, the amount of tax that an individual can save would depend upon two factors- the tax regime chosen and the expenses or the investments made by the individual for claiming the said deductions..
If an individual opts for the old/existing tax regime, then the individual will be eligible to claim the tax-exemptions such as house rent allowance (HRA), leave travel concession (LTC) and deductions under sections such as 80C (maximum up to Rs 1.5 lakh in financial year), 80D (deduction on the medical policy premium paid), 80E (Interest paid on education loan) etc..
The 80CCD (2) deduction is available under the new and old tax regimes .. Section 80D: Deduction under section 80D is available only if an individual has purchased a health insurance policy for self, spouse, dependent childrens or their parents..
"If an individual is paying health insurance premium for senior citizen parents (those aged 60 years or above), then instead of Rs 25,000 additional deduction the individual can claim up to Rs 50,000 additional tax deduction under section 80D..
But individuals opting for the new lower tax regime under Section 115BAC are not entitled to claim the said deduction for professional tax paid," says Kumarmanglam Vijay, Partner, JSA Advocates & Solicitors...
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