Automatic income tax deductions have been done away with in the new tax regime, however some sources of income and investment options remain absolutely tax-exempt under section 10 of the Income Tax Act. These exemptions are available irrespective of whether tax-payers opt for the new or old tax regimes.  

Income Sources and Schemes Relief from Taxation:

Public Provident Fund (PPF) 

Both interest and maturity are tax exempt.  

Covered under Section 10(11).  

Sukanya Samriddhi Yojana (SSY)

Scheme meant exclusively for daughters.  

Interest, and maturity amount, currently set at 8.2%, is completely tax exempt.  

Covered under Section 10(15).  

Employee Provident Fund (EPF) 

Eligible for tax exemption after five years of continuous service.  

Contributions exceeding ₹2.5 lakh per annum are subject to taxation on interest.  

Covered under Section 10(12).  

Life Insurance Corporation (LIC) Maturity (Section 10(10D)

Maturity proceeds where premium is less than 10% of the sum assured is tax free.  

Policy must be at least 5 years old.  

Covered under Section 10(10D).  

**National Pension System (NPS)**  

60% lump sum withdrawal at maturity is tax exempt.  

The remaining 40% allocated towards annuity purchase is taxable.  

**Agricultural Income**  

Tax free under all regimes.  

Covered under Section 10(1).  

**Gratuity**  

Tax-free for government employees.  

For private employees gratuity is tax free till ₹20 lakh.  

Covered under Section 10(10).

North National Saving Certificate

Principal amount at maturity is free from tax.

Interest is payable tax under New Tax Regime.

Exemptions Available Under Both Tax Regimes Are:

Scheme/Income Type

Old-regime tax status

New regime tax status

PPF

Interest & realization of amount value is tax free under 80 C plus ten eleven.

Interest & maturity is tax free under ten eleven.

SSY

Interest & realization of amount value- tax free under 80C plus ten eleven A.

Free of tax interest is under ten eleven A.

EPF

After 5 year is tax free sec 80 C plus ten twelve.

after 5 year is tax free under ten twelve.

Life Insurance Corporation

Tax are free of license grads policy MS if premium is or 10 on sum assured.

Same regulations applies under ten ten d.

N P S (sixty percent)
Tax free is sixty percent, forty percent taxable with deduction

Tax free is sixty percent, forty is taxable, no deduction.

Agriculture income

Tax free completely under ten one.

Gratuity

Total tax free up to twenty lah Sec 10 10

National Saving Certificate

Principal amount accepted without tax is twenty lah Sec ten ten

Principal amount accepted without tax is twenty alan under tax ten, Interest is spent tax on postpone National Saving Certificate.

The benefits of investing in these tax-free instruments are:

Guaranteed secure returns.

Long-term returns investment planning.

Even without conventional deduction, there is reduced tax liability.

Provides excellent financial planning objective that forward in shift new tax regulation is declined.

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