Income-tax on Individuals / HUF / AOP / BOI or Artificial Judicial Persons for the financial year 2024-25, relevant to the assessment year 2025-26.
Deductions & Exemptions allowed under Default Tax RegimeUnlike the Optional Tax Regime wherein all the relevant deductions or exemptions are allowed, only certain deductions or exemptions are allowed under the Default Tax Regime, which are as undermentioned;
| Sr. No. | Deductions / Exemptions | Relevant Section | Maximum Limit |
| 1 | Standard Deduction | 16(ia) | ₹ 75,000 |
| 2 | Interest on home loan taken on rented property | 24(b) | Amount of Interest |
| 3 | Employer’s contribution to NPS | 80CCD(2) | 14% of salary (Basic + DA), if Central or State Govt employee; otherwise 10% (14% if opted for default tax regime) of salary. |
| 4 | Contribution to Agniveer Corpus Fund | 80CCH | Amount contributed |
| 5 | Additional Employee Costs | 80JJAA | Refer relevant section |
| 6 | Deduction of Family Pension Income | 57 | 1/3rd of such income or ₹15,000 (₹25,000 if opted for default tax regime), whichever is less |
| 7 | Gifts upto ₹50000 | 56(2) | ₹ 50,000 |
| 8 | Exemption on gratuity | 10(10) | As per limit |
| 9 | Exemption on leave encashment | 10(10AA) | As per limit |
| 10 | Exemption on voluntary retirement | 10(10C) | As per limit |
| 11 | Daily Allowance | 10(14)(i) | Actual amount spent |
| 12 | Conveyance Allowance | 10(14)(i) | Actual amount spent |
| 13 | Travel, tour or transfer compensation | 10(14)(i) | Actual amount spent |
| 14 | Transport Allowance for a specially abled person | 10(14)(ii) | ₹3200 per month |
Additional Understanding with a conclusion on two tax regimes