Tax Savings with a 35 Lakh Income: Expert Advice

Ans: Dear Praveen,

Thank you for your question. I understand that you're looking for tax-saving options under the new tax regime. While the new tax regime does limit some of the deductions available under the old regime, there are still a few options you can consider.

Standard Deduction: A fixed amount of Rs. 50,000 is allowed as a deduction from the total income of salaried individuals. Please note that if you claim this standard deduction, you cannot claim any other deduction for the same amount under any other section of the Income Tax Act.
Employer's Contribution to NPS: If your employer contributes to your National Pension Scheme (NPS) account, this contribution can be claimed as a deduction.
Transport Allowances for Persons with Disabilities: If you have a disability, you may be eligible for deductions related to transport allowances.
Gratuity: If you receive a gratuity from your employer, it may be exempt from tax under Section 10(10).
Leave Encashment: If you receive any amount in lieu of leave not taken, it may be exempt from tax under Section 10(10AA).
Please remember that tax planning should be a part of your overall financial planning. It's important to choose the options that best suit your financial goals and circumstances. If you need more detailed advice, I would recommend consulting with a tax advisor who can provide guidance based on your specific situation.

I hope this helps!

Ans: You have planned well & already covered Savings Limit u/s 80-C (Rs.1,50,000.00; 80-D (Rs.25,000.00; 80CCD (1B) Rs.50,000.00 (hope your contribution under this scheme is at least Rs.50,000.00 during the year) & Interest on Housing Loan u/s 24(b) (Rs.2,00,000.00. There is hardly any further scope for other tax saving investments.
Most welcome for any further details. Thanks.