Here are the investment schemes on which investors can claim tax exemption for interest earned, whether they are in the New or Old Regime.
)
Even though most deductions have been eliminated in the New Tax Regime, there are still some investment schemes on which tax is not levied at all. Investors can claim tax exemption for the interest earned on certain schemes, whether they have opted for New Tax Regime or Old Tax Regime.
Section 10 of the Income Tax Act governs these exemptions. The government has maintained these as tax exemptions and not as deductions. Therefore, they can be availed in the New Tax Regime, even if you do not get deductions like 80C/80D.
According to the Income Tax Department website, some exemptions under section 10 still remain applicable in the New Regime. Schemes like employer contribution to NPS, LIC maturity under 10(10D), PPF, Sukanya Samriddhi Yojana, and agricultural income remain tax-free.
The exemptions under Section 10(10D), 10(1), and some savings instrument maturities remain tax-free under both regimes.
Section 10 clauses– Income Tax Act
10(11): PPF
10(12): EPF
10(10D): LIC
10(15): Sukanya
10(1): Agriculture
Here are the investment schemes on which investors can claim tax exemption for interest earned, whether they are in the New or Old Regime.
* Interest and maturity both are tax-free.
* Tax-free return of up to Rs 22 lakh in 15 years.
* Section 10(11)
* No tax on agricultural income.
* Tax-free in all regimes.
* Section 10(1)
* Interest 8.2%, maturity is completely tax-free.
* Section 10(15)
* The entire amount is tax-free after completion of 5 years of service.
* Interest on contribution above Rs 2.5 lakh is taxable.
* Section 10(12)
* The maturity amount of the policy is tax-free if the premium is ≤10% of the sum assured.
* The policy should be 5+ years old.
* Section 10(10D)
* 60% lump sum is completely tax-free.
* 40% annuity is taxable, but tax will be applicable every year.
* If you are a government employee, the entire gratuity is tax-free.
* Private employees get gratuity up to Rs 20 lakh tax-free.
* Section 10(10).
* The principal received on maturity is tax-free.
* The interest is taxable. Tax will have to be paid on interest in the new regime.
Newsletter
