A brief comparison of the new & old tax regimes for FY 2023-24 is given in the image.. If the benefit which we have to let go to join the new scheme is more than the equalization factor given above, then the old scheme may be beneficial But if it is less than the equalization factor then the new scheme is beneficial.

Following deductions/exemption are not allowed in New Tax regime for FY 2023-24-

1. Deductions u/s 80C (Contribution to PPF, PF, LIC premium etc.) maximum Rs. 150000/-
2. Dedutions U/s 80CCD(IB) (Employee Contribution to NPS) maximum Rs. 50000/-
3. Deductions u/s 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GGA, 80GGC, 80IA, 80IAB, 80IAC, 80IB, 80TTA, 80TTA, 80U etc.
4. Exemption for LTC u/s 10(5)
5. Exemption for HRA.
6. Exemption of Entertainment Allowance.
7. Exemption of Professional tax.
8. Exemption of Helper allowance, Washing Allowance and otehr special allowances u/s 10(14)
9. Deduction of interest u/s 24.
10. exemption of income of minor child u/s 10(32)
11. Deductions u/s 32(1)(ii), (iia), (iii), (2AAA), 35AD, 35CCC.
12. Exemptions of 10AA.
13. Deductions u/s 80TTA, 80TTB.
14. Deductions u/s 80U.
15. Benefit of higher basic exemption limit of Rs. 500000/- for super senior citizen is also not allowed under new tax regime.
16. Set-off / carry forward of any loss of above is also not allowed.
17. Adjustment of House property loss from other income heads is also not allowed.

Following deductions/exemption are kept allowed in New Tax regime for FY 2023-24-

1. Standard deduction from salary for Rs. 50000/-
2. Deduction for family pension u/s 57(iia)
3. Transport allowance exemption for disabled employee.
4. Converyance & daily allowance exemption.
5. Deduction u/s 80JJAA
6. NPS u/s 80CCD(2) Employer contribution to NPS.
7. Rebate u/s 87A is increased for taxable income upto Rs. 700000/- from Rs. 500000/- only for assessee who are in new tax regime.
8. Surcharge is restricted to 25% for income above 2cr. only for assesee in new tax regime.

You can claim tax exemption for:

1. Transport allowances in case of a specially-abled person.
2. Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
3. Any compensation received to meet the cost of travel on tour or transfer.
4. Daily allowance received to meet the expenditure you incur on account of absence from his regular place of duty.
5. Perquisites for official purposes
6. Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
7. Interest on Home Loan on let-out property (Section 24) (but loss of house property cannot be adjusted from other heads)
8. Gifts up to Rs 5,000
9. Deduction for employer’s contribution to NPS account [Section 80CCD(2)]
10. Deduction for additional employee cost (Section 80JJA)
11. Budget 2023 introduced a standard deduction of Rs 50,000 under New Tax Regime applicable from FY 2023-24
12. Budget 2023 also introduced deduction under Section 57(iia) of family pension income
13. Budget 2023 further introduced a deduction of the amount paid or deposited in the Agniveer Corpus Fund under Section 80CCH(2)