New tax regime offers simplified income tax with limited deductions and exemptions

The new tax regime simplifies income tax but reduces available deductions and exemptions. Taxpayers can claim a standard deduction of 75,000 and employer contributions to the National Pension Scheme, but housing loan interest for self-occupied properties is no longer deductible. Unlike the previous regime, taxpayers cannot offset losses from housing loan interest against other income. The new system allows deductions for municipal taxes and adjustments for losses from rental properties, but limits deductions to one self-occupied property. Exemptions for house rent allowance are removed, but certain employer allowances remain deductible. Taxpayers can also claim exemptions on retirement benefits, including 25 lakh for leave encashment and 20 lakh for gratuity.