of rs 50000 from salary as salaried taxpayers do not get a deduction for any expenses incurred by themalmost every salaried taxpayer is contributing to investing in epf ppf paying life insurance and health insurance premiums etc while these contributions investments are necessary means of providing financial security in old age and for ensuring the availability of life health coverage in emergencies allowing a deduction for these investments may act as an added incentive for salaried taxpayers to become part of such schemes the government may consider allowing deductions under section 80c of the incometax act 1961 for limited avenues such as contributions to epf ppf and qualifying life insurance products similarly a deduction may be allowed for payment of health insurance premiums under section 80d and contribution towards nps under section 80ccd11b of the act since the intent is to reduce the tax burden for lower and middleincome groups the government may restrict the aforementioned deductions to rs 25 lakh salaried taxpayers would be delighted if the upcoming budget makes changes to the new income tax regime to make it more attractive by allowing certain muchneeded deductions these changes may encourage broader acceptance of the new income tax regime by taxpayers this is because the administrative hassle of maintaining records and proofs will be limited to a few items while the taxpayers can continue to enjoy overall lower tax rates on their total income views expressed are personal akshay sharma senior manager people advisory services ey india contributed to this article