Old and New Regime–Comparision rendered easy by ET via the chart below

Income Tax Leave a comment
Benefits 
 		Old Tax Regime 
 		New Tax Regime 
 
Value of free food voucher 
 
 		INR 200 per meal 
 		INR 200 per meal 
 
A specific carve-out allowed tax exemption earlier. However, no such carve-out has been retained. 
 
Children Education Allowance 
 
 		INR 3,000 p.m. per child 
(max 2 children) 
 		– 
 
 
House Rent Allowance (Coverage of Metro cities for exemption ) 
 
 		Addition of cities along with existing ones: Hyderabad, Pune, Ahmedabad, and Bengaluru. 
 
Additional requirement: Employees must disclose any relationship with the landlord while claiming HRA and Employers are required to obtain the copy of the House Rent Agreement for verifying the HRA Claims. 
 		– 
 
 
Increase in Interest-free or Concessional loan amount 
 		Increased to INR 2,00,000 
 		– 
 
 
Children Hotel Allowance 
 
 		INR 9,000 p.m. per child 
(max 2 children) 
 		– 
 
 
Employer Owned Car- a. Cubic capacity up to 1.6 litres or where the motor car is an electric vehicle 
 		INR 8,000 p.m. (INR 5,000 plus INR 3,000 for chauffeur) 
 
This benefit has been extended to a motor car which is an electric vehicle 
 		INR 8,000 p.m. (INR 5,000 plus INR 3,000 for chauffeur) 
 
This benefit has been extended to a motor car which is an electric vehicle 
 
Employer Owned Car- b. Cubic capacity exceeding 1.6 litres 
 		INR 10,000 p.m. (INR 7,000 plus INR 3,000 for chauffeur) 
 		INR 10,000 p.m. (INR 7,000 plus INR 3,000 for chauffeur) 
 
Employee owns any other automotive conveyance 
 		Actual expense (less) INR 3,000 
 		Actual expense (less) INR 3,000 
 
Compensatory field area 
 		INR 13,500 p.m. 
 		– 
 
Compensatory modified field area 
 		INR 8,000 p.m. 
 		– 
 
Counter-insurgency allowance to armed forces 
 		INR 22,000 p.m. 
 
 		– 
Transport allowance to disabled employees 
 		Metro cities: INR 15,000 + DA 
Other cities: INR 8,000 + DA 
 		– 
 
 
Underground allowance for employees working underground mines 
 		15% of basic pay 
 
 		– 
 
 
Allowance to employees working in transport system 
 		70% of allowance up to INR 25,000 p.m. 
 
 		– 
 
 
Value of any gift and voucher to employee 
 		INR 15,000 
 		INR 15,000 
 
 
Leave Travel Concession (LTC) 
 
 		Economy class airfare restriction is removed and allow exemption based on the airfare applicable to the class of travel to which the employee is entitled. 
 
In areas without a recognised public transport system, the existing limit equivalent to the air‑conditioned first‑class rail fare is proposed to be revised to INR 30 per kilometre for the shortest route. 
 		– 
 
 

Leave a Reply