🧾 Income Tax News for Govt Employees

Old vs New Regime — the recurring headline

Most income-tax news for salaried government employees comes back to one choice: old regime vs new regime. The new regime offers lower slab rates, a standard deduction of ₹75,000, and — after recent changes — no tax on income up to ₹12 lakh via the Section 87A rebate, but it drops most deductions. The old regime keeps HRA exemption, 80C, 80D and home-loan interest. Which one wins depends on your deductions; work it out with the income tax calculator and read the old vs new regime guide.

What survives in the new regime

Two things government employees often miss: the employer NPS contribution under 80CCD(2) — up to 14% of Basic + DA — remains deductible in both regimes, and the ₹75,000 standard deduction applies to salary in the new regime. These two alone shift the maths for many central employees.

Arrears, Form 16 and Section 89

DA arrears and pay-revision arrears can push you into a higher slab in the year they are paid. Section 89(1) relief with Form 10E lets you spread the arrears back across the years they relate to — but Form 10E must be filed before the ITR, or the claim is rejected. See the Section 89 / Form 10E guide. At filing time, the ITR guide for government employees covers GPF interest, two Form 16s and the quarters perquisite.

How to use tax news

Tax rules change every Budget. Use each headline as a cue to re-run your own numbers before you lock a regime for the year — the income tax calculator compares both side by side.