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Income Tax Deductions & Exemptions in India (FY 2025-26)
Deductions reduce taxable income, but many popular deductions are available only in the old tax regime. For FY 2025-26, start by deciding the regime, then include only the deductions allowed in that regime.
Deductions allowed in the new regime
| Deduction | Availability under new regime |
|---|---|
| Standard deduction for salary | Allowed: ₹75,000 |
| Employer NPS contribution u/s 80CCD(2) | Allowed up to 14% of basic salary |
| Family pension deduction | Allowed |
| Additional employee cost u/s 80JJAA | Allowed |
| Transport allowance for specially-abled | Allowed |
Deductions generally available only in the old regime
| Deduction or exemption | Old regime treatment | New regime treatment |
|---|---|---|
| 80C investments and payments | Allowed up to ₹1.5L | Not available |
| 80D health insurance | Allowed | Not available |
| 80CCD(1B) NPS | Allowed up to ₹50,000 | Not available |
| HRA | Allowed if eligible | Not available |
| LTA | Allowed if eligible | Not available |
| Self-occupied home loan interest | Allowed up to ₹2L | Not available |
| 80TTA/80TTB | Allowed | Not available |
Key deductions explained
Standard deduction
Salary taxpayers get a direct standard deduction: ₹75,000 in the new regime and ₹50,000 in the old regime. This does not require investment proof.
Section 80C and 80D
Section 80C up to ₹1.5L and Section 80D health insurance deduction are old-regime benefits. If these are large, compare the old regime carefully against the new regime slabs.
NPS deductions
Employee NPS under 80CCD(1B) up to ₹50,000 is old-regime only. Employer NPS contribution under 80CCD(2), up to 14% of basic salary, is available in the new regime.
HRA, LTA and home loan interest
HRA, LTA and self-occupied home-loan interest up to ₹2L are old-regime items. If you pay rent or have a home loan, include these in your new vs old regime comparison.
Check deductions before filing
Use the calculator to compare allowed deductions under both regimes.
Open Calculator →FAQ
Is 80C available in the new tax regime?
No. Section 80C up to ₹1.5L is available only in the old tax regime, not in the new regime.
Which major deductions are available in the new regime?
The new regime allows salary standard deduction of ₹75,000, employer NPS contribution under 80CCD(2) up to 14% of basic salary, family pension deduction, 80JJAA and transport allowance for specially-abled taxpayers.
Can I claim HRA in the new regime?
No. HRA exemption is not available in the new tax regime. It can be claimed only when eligible under the old regime.
Is 80D health insurance deduction available in the new regime?
No. Section 80D health insurance deduction is available in the old regime and is not available in the new regime.