New Tax Regime FY 2020 -21 – Allowable Deductions

The new tax regime introduced for FY 2020-21 with multiple slabs, disallows many deductions and exemptions which are available in the old tax regime. But considering the retirement planning by tax payers during the earlier years, the Act allows for the following the deductions.

  1. Retirement benefits, gratuity etc.
  2. commutation of pension
  3. leave encashment on retirement
  4. retrenchment compensation
  5. VRS benefits
  6. EPFO: Employer contribution
  7. NPS withdrawal benefits
  8. Education scholarships
  9. Payments of awards instituted in public interest

So there is no need to fear about the withdrawal from the above existing tax saving schemes.