Filing an Income Tax Return (ITR) is not just a yearly formality.
It also helps in many financial activities like getting home loans, credit cards, and even visas, because it serves as proof of income.
For FY26, the ITR filing deadline is July 31, 2026.
Taxpayers in India can choose between two systems: the old tax regime and the new tax regime.
The old system allows multiple deductions like 80C, 80D, and HRA benefits.
The new tax regime, on the other hand, offers lower tax rates with limited but useful deductions.
Here are five key tax benefits available under the new tax regime.
Standard Deduction of ₹75,000
Under the new tax regime, salaried individuals can directly claim a standard deduction of ₹75,000 without any investment proof or documentation.
For example, if a person earns ₹14 lakh per year, their taxable income becomes ₹13.25 lakh after applying this deduction.
This simple benefit reduces taxable income automatically and applies to all eligible salaried taxpayers.
NPS Contribution Benefit
Employers contributing to the National Pension System (NPS) on behalf of employees can offer additional tax relief under Section 80CCD(2).
Employers can contribute up to 14% of basic salary and dearness allowance, and this amount is fully deductible.
This benefit is available in addition to the standard deduction.
However, the total employer contribution across EPF, NPS, and superannuation should not exceed ₹7.5 lakh annually.
Tax Relief on Family Pension
Individuals receiving a family pension can also claim tax benefits under the new tax regime.
They can claim either ₹25,000 or one-third of the pension amount, whichever is lower.
This helps reduce the tax burden for dependent family members receiving pensions.
Home Loan Interest Benefit for Rented Property
If you have taken a home loan and the property is rented out, you can claim a deduction on the interest paid.
There is no fixed upper limit for this benefit under the new tax regime, making it especially useful for property owners earning rental income.
Deduction for Agniveer Corpus Fund
Under Section 80CCH, Agniveers can claim full deduction on contributions made to the Agniveer Corpus Fund.
This provision supports individuals enrolled under the Agnipath scheme by offering complete tax relief on their contributions.
The new tax regime may offer fewer deductions compared to the old system, but it still includes several important benefits that can help reduce taxable income in different situations.
