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Income Tax Exemptions and Deductions Allowed for Salaried Individuals Under Old Tax Regime – FY 2022-23 and FY 2023-24

Every salaried person must pay an amount from their salary as tax under the Income Tax Act of 1961. Under the Income Tax Act of 1961, there are many provisions and variations with subsections describing the details of tax payments, deductions, and computations. A lot of deductions from subsections 80C to 80U are available. After subtracting all the available tax-saving provisions and deductions, the final amount is paid to the government as the income tax on salary.

If an assessee opt for the old tax regime, he/she can claim the benefits from the following exemptions and deductions for both the previous and current financial years:

  • House Rent Allowance (HRA), based on the individual’s rent and salary structure. 
  • The professional tax of ₹ 2,500. 
  •  Leave Travel Allowance (LTA).  
  • Deductions on entertainment allowance (applicable for government employees).
  • Deduction of the interest payment of home loan for self-occupied/ vacant property under Section 24(b). 
  • Deduction of the interest payment up to ₹2 lakhs for the purchase/construction/ repair/reconstruction of house property under section 24(b).
  • Tax deduction under Section 35(1)(ii), 35(2AA), 32AD, 33AB, 35(1)(iii), 33ABA, 35(1)(ii), 35CCC(a), and 35AD of the IT Act. 
  • Additional depreciation as specified under Section 32(ii) (a).
  • The option to adjust the unabsorbed depreciation of previous years.
  • Deductions as specified under Chapter VI-A such as 80IA, 80CCC, 80C, 80CCD, 80D, 80CCG, 80DDB, 80EE, 80E, 80EEA, 80DD, 80EEB, 80GG, 80IB, 80IAC, and 80IAB. 
  • Minor child, helper allowances and allowances for children’s education. 

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Note: This Post was last updated on June 26, 2023

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation i.e. June 26, 2023. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, We assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL WE SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.

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