Tax Tips 2025: You can claim benefits on Sukanya Samriddhi, SCSS under New Tax Regime 2025-26; details here 

Tax Regimes in 2025-26: The New Tax Regime is known to offer reduced slabs and fewer deductions, with just enhanced standard deduction and select exemptions. The fiscal year 2025-26, which kicked off on April 1, 2025, introduced new income tax slabs in the New Tax Regime. 

Individuals earning up to Rs 12 lakh will benefit from a tax rebate of Rs 60,000 under Section 87A (and Rs 12.75 lakh for salaried individuals). These updated tax slabs in the New Tax Regime diminish the attractiveness of the Old Tax Regime, which featured slabs of 5%, 20%, and 30%. This is especially true when considering the deductions available for investments in tax-saving schemes from the gross taxable income.

However, there are some deductions on your investments in post office under New Tax Regime that you can avail of from April 1, 2025.  Under the new tax regime, there is a small tax exemption of Rs 3,500 per financial year available on the interest earned from a post office savings account. This exemption falls under Section 10(15)(i) of the Income-tax Act. 

In the Old Tax Regime, tax deductions on interest income from savings accounts can be claimed under Sections 80TTA and 80TTB, which are not applicable under the New Tax Regime. Nonetheless, certain exemptions are available under Section 10(15).

"Under the new tax regime, interest up to Rs 3,500 (single) or Rs 7,000 (joint) from Post Office savings is tax-exempt under Section 10(15). Small benefit—but worth claiming if you’re already investing in schemes like SCSS or Sukanya Samriddhi," efiletax, a dedicated social media handle, wrote on X. 

The exemption under Section 10(15)(i) of the Income-tax Act is available for both New Tax Regime and Old Tax Regime.

Section 80TTA offers a tax benefit to individuals on the interest earned from their savings bank account. Enacted in the 2013 Finance Bill, it permits a deduction of up to Rs 10,000 annually on savings account interest. This measure is designed to encourage a habit of saving among the populace. Certain eligibility requirements must be met to claim the Section 80TTA deduction for the assessment year 2023-24.

Tax benefits of Sukanya Samriddhi Scheme

Tax Benefits: Investors can avail full tax deductions on the principal amount invested up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act. Interest earned and maturity amounts from the scheme are also exempt from taxes. This is available under the Old Tax Regime.

Long Tenure: Secure your daughter's future with a maturity period of 21 years or until her marriage, starting from her 18th birthday.

Educational Expenses Coverage: Investors can withdraw 50% of the account balance as of the previous financial year's end to cover educational expenses for their girl child. Proof of admission must be provided after the girl child turns 18 years old or completes the tenth standard.

Guaranteed Returns: The Sukanya Samriddhi Yojana is a government-backed scheme, providing a guarantee of returns upon maturity.

Tax benefits under Senior Citizen Savings Scheme

According to Section 80C of the Income Tax Act, 1961, individuals can avail tax deductions on investments up to Rs.1.5 lakh. If the cumulative interest on all Senior Citizen Savings Scheme (SCSS) accounts exceeds Rs.50,000 per annum, Tax Deducted at Source (TDS) will be applied. In the case of accounts opened by individuals below 60 years of age, TDS will be deducted if the total interest surpasses Rs.10,000 annually. With an interest rate of 8.2% per annum and an investment amount of Rs.30 lakh, each investor is expected to receive a monthly income of Rs.20,500.

Tax benefits as per tax regimes

The new tax regime, introduced by Finance Minister Nirmala Sitharaman in the Union Budget 2025, offers simplified tax slabs but fewer deductions, making it an attractive option for those with limited tax-saving investments. The standard deduction has been increased to Rs 75,000, a notable change from the previous Rs 50,000, effective from FY 2025-26. This adjustment contrasts with the old regime, where the standard deduction remains unchanged, highlighting the new regime's appeal for those not heavily invested in traditional tax-saving instruments.

Despite the increased standard deduction, the old tax regime continues to offer a wider range of deductions and exemptions. This regime remains beneficial for taxpayers with significant investments in tools that qualify for tax savings under the Income Tax Act, 1961. 

On the other hand, the new regime, with its lower tax slab rates, can be advantageous for individuals who have not engaged in extensive tax-saving investments, thus favouring those with simpler financial circumstances. The new regime's structure presents a straightforward approach to tax filing, albeit with fewer opportunities for deductions.

Among the benefits under the new tax regime is the exemption on employer contributions to the National Pension System (NPS) under Section 80CCD(2). This exemption applies exclusively to salaried individuals, with government employees eligible for contributions up to 14% of their basic salary and dearness allowance, and private sector employees up to 10%. Furthermore, contributions to the Agniveer Corpus Fund under the Agneepath scheme are tax-deductible, with exemptions applicable to amounts received by beneficiaries or their nominees in both tax regimes. These provisions underscore the new regime's targeted tax reliefs for specific contributions.

The new tax regime also extends exemptions for family pensions under Section 57(IIa), where a portion of the pension received by the family of a deceased employee is tax-exempt. Additionally, new exemptions have been introduced under Section 10, including deductions for voluntary retirement, gratuity, and leave encashment, each with specified limits. For instance, leave encashment is tax-free up to Rs 25 lakh upon retirement or resignation. 

Further allowances include transport and conveyance allowances, with disabled employees eligible for a transport allowance exemption of up to Rs 3,200 per month. Conveyance allowances related to office work are deductible based on actual expenses.