with respect to your medical insurance or donations that you make or with respect to interest on your savings bank accounts said hunar mehra a ca and partner at mk singh and cohence if you choose the new tax system you must forego some tax deductions and exemptions that were previously accessible salaried people cannot make use of important advantages such as standard deduction house rent allowance hra leave travel assistance lta and even some of the allowances granted under the new tax regimethe new tax regimes slab rates do not alter based on age but under the previous tax regime the basic income level free from tax for senior people aged 60 to 80 years and super senior citizens aged 80 years and above was 3 lakh and 5 lakh respectively moreover under the new tax framework individuals are no longer permitted to claim up to 70 income tax deductions when computing taxes as a result each individual must do his or her own analysis of the old and new tax regimes to determine which is more advantageous based on the sort of investments made and the returns obtained on those investments said neha nagar founder of taxationhelpinconsider the following scenario a 35yearold man has a total income of rs 1000000 and has made investments of rs 150000 under section 80c and rs 50000 under section 80ccd he claimed an income tax deduction of rs 500000 for medical and leave travel expenses as well as rs 150000 for hra is a standard deduction the same as a rebatea rebate is a like a partial refund from tax payable while deductions are to be claimed from the income rebate under section 87a helps taxpayers reduce their income tax liability you can claim the said rebate if your total income does not exceed rs 5 lakh in a financial year your income tax liability becomes nil after claiming the rebate under section 87aincome tax rebates are those items which are allowed to be claimed from the total tax payable it is pertinent to note that income tax exemptions and income tax deductions are allowed to be claimed from the income whereas rebate is allowed to be claimed from the tax payable said chatrathstandard deduction is available upto rs 50000 in a financial year however you can claim this deduction only once for example if you have worked with two employers during the year your standard deduction will be limited to rs 50000 and is a standard deduction available only on salaried income rebate on the other hand is available on your total income earnedsection 87a of the income tax act gives a rebate for those having net income not more than rs 5 lakh after allowing for deductions to bring down tax liability said mehra you can claim a tax rebate of up to rs 12500 so even if i have three different employers i can only claim the standard deduction oncethe standard deduction is a flat deduction from the total