The Sukanya Samriddhi Yojana maturity payout is still tax -free. The leave encashment during retirement is eligible for tax exemption . While the tax payers might be attracted to the deductions/ exemptions available in the old tax regime , they need to properly assess and compare new vs old tax system to understand the implications of choosing either. 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 . The New Tax Regime Exemption list for 2025 allows individuals and Hindu Undivided Families (HUFs) to opt for a simpler income tax system with lower rates and fewer deductions/ exemptions . A tax exemption allows taxpayers to reduce their taxable income, and many are eligible for various exemptions . Below is the updated list for 2025. Understand which deductions are allowed under the new tax regime . Get a breakdown of Section 80C, NPS, HRA, and deduction benefits for salaried taxpayers.
