Filing an Income Tax Return (ITR) is not just a yearly formality—it also helps when applying for loans, credit cards, home loans, and even visas.
This is because ITR acts as proof of income.
The ITR filing season for FY 2025–26 is currently ongoing, and the last date to file is July 31, 2026.
Taxpayers in India can choose between the old tax regime and the new tax regime, depending on which one suits them better.
The old regime offers multiple deductions like Section 80C, 80D, and HRA benefits.
However, the new tax regime focuses on lower tax rates with limited but useful exemptions.
Here are five important tax benefits available under the new tax regime.
Standard Deduction of ₹75,000
Under the new tax system, salaried individuals can directly reduce ₹75,000 from their taxable income as a standard deduction.
No bills, proofs, or investments are required for this benefit.
For example, if your annual salary is ₹14,00,000, your taxable income becomes ₹13,25,000 after applying the standard deduction.
Employer Contribution to NPS
If your employer contributes to your National Pension System (NPS) Tier-1 account, you can claim a tax deduction under Section 80CCD(2).
The deduction can go up to 14% of your basic salary plus dearness allowance.
This benefit is available in addition to the standard deduction.
However, the total employer contribution to retirement funds like EPF, NPS, and superannuation should not exceed ₹7.5 lakh per year.
Tax Relief on Family Pension
If you receive a family pension, you can also get tax relief under the new regime.
You can claim either:
₹25,000, or
One-third of the pension amount
(whichever is lower)
Home Loan Interest Benefit
Taxpayers who have rented out their property can claim a deduction on the interest paid for their home loan.
Unlike earlier limits, the new tax regime does not place a maximum cap on this benefit for such rented properties.
Deduction for Agniveer Corpus Fund
Under Section 80CCH, individuals enrolled in the Agniveer scheme can claim a full deduction on contributions made to the Agniveer Corpus Fund.
This provides additional financial relief to eligible Agniveers under the new tax structure.
Overall, while the new tax regime offers fewer deductions than the old one, it still provides several important benefits that can reduce your taxable income significantly.
