Exemption to be provided or not for our salary structure under OLD/New regime ?

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1

I Have the Below Salary Structure for My employees , Due to the change of rules and introduce of New regime let me know for which components will we shall accept the Bills for exemption and if the “Tiffin/Lunch/Refreshment Allowance” will also be exempted as it is part of salary every month . Also will it change for OLD/New Regime ?

Salary structure is :
Gross Salary ( Fixed Every Month )
Monthly Basic
Monthly HRA
Monthly Conveyance
Tiffin/Lunch/Refreshment Allowance
Monthly Medical Allowance
Monthly Child Education Allowance
Special Allowance
Total Deductions
Professional Tax
TDS(Tax Deducted at Source)

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2

Hello,

What you can do is, list the exemptions and deductions that you avail currently under the old tax regime, minus them from your salary to see what is your taxable income. If you opt new tax regime, you may have to let go of most of these exemptions and deductions. Based on this, you can decide which regime you can opt for.

An article relating to this Difference Between Old Income Tax Regime Vs New: Which one to Opt? (etmoney.com) may be of some help.

Regards,
Bhuvana Anand

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