For the individuals who might be considering the option of opting to pay their income tax through the new regime, there are several changes to consider. The proposed framework will see you forgoing several deductions, benefits and exemptions, owing to the lowered rates of interest for different slabs of income. Here are the important changes you need to keep in mind:

List of deductions and exemptions that will not be available under the new regime

For those choosing the new tax regime, almost all deductions under chapter VIA will not be applicable. Here are the ones you should definitely know about. 

1. Leave Travel Allowance (LTA), House Rent Allowance (HRA) and a standard deduction of INR 50,000; all of which were previously available to salaried persons. 
2. The deductions claimed under sections 80TTA (Deduction in respect of Interest on deposits in savings account) and 80TTB (Deduction in respect of Interest on deposits to senior citizens).
3. Those deductions for persons with disability under sections 80DD and 80DDB will not be claimable under the new regime.
4. You will have to forgo the most commonly claimed deductions under section 80C, like provident fund contributions, life insurance premium, school tuition fee for children and deductions on other investments you may have.
5. The deductions on medical insurance premiums, under section 80D will not be available.
6. Tax breaks that were previously available on interest paid on education loans under section 80E and donations made to charitable trust under section 80G cannot be claimed.
7. Particularly for government employees, the deductions under section 16 – entertainment and professional – will not be applicable.
8. The tax benefit under section 24 on interest paid on housing loan taken for a self-occupied or vacant property will not be available. 

Apart from these, there may be other deductions that apply to you particularly, and might not be available to you under the new regime. So it is important that you consult your financial advisor before you make your decision.

The deductions and exemptions that will be available under the new regime

There are some deductions that will still be available under the new regime. Here are the ones that are important to keep in mind.

1. Interest on home loans, in the case of rented out property, will still be available under section 24. 
2. Those deductions under 80CCD(2), in the case that your employer contributes to a pension scheme of the central government.
3. The following deductions under sections 10 will still be available – 

• (6) : Remuneration received as an official of an Embassy, High Commission, etc.
• (7) : Allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering services outside India
• (10) : Death–cum-retirement gratuity received
• (10A) : Commuted value of pension received
• (10AA) : Earned leave encashment on retirement
• (10B) : Retrenchment Compensation received in respect of schemes approved and not approved
• (10C) : Amount received or receivable on voluntary retirement or termination of service
• (10CC) : Tax paid by employer on non-monetary perquisite 

Is it better to switch to the new scheme?

The question of whether or not it would be better to opt-in to the new scheme will depend on what exemptions you presently avail. If you are someone who avails a large number of deductions that may not be available under the new scheme, then it will obviously be better for you to continue in the old regime. However, if you do not avail of any deductions or benefits, switching over to the new regime might be a better option. In these matters, consulting a certified financial planner or wealth management firm can help you decide what will be the right move for you.