Complete Income Tax Deductions List (Sections 80C to 80U) for FY 2025–26 / AY 2026–27

Income Tax Deductions List for FY 2025–26 (AY 2026–27) — Old Regime vs New Regime

Choosing the right tax regime depends on understanding which deductions are allowed.

• The New Tax Regime (default) allows very few deductions.

• The Old Tax Regime allows over 40 major deductions including 80C, 80D, HRA, Home Loan, etc.

This guide gives you the complete and updated list for FY 2025–26.

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PART 1 — Deductions Allowed in the NEW TAX REGIME (FY 2025–26)

The New Regime offers limited deductions, but lower tax rates.

✔️ 1. Standard Deduction — ₹75,000 (for FY 2025–26)

Applicable to:

• Salaried employees

• Pensioners

(Updated from ₹50,000 earlier)

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✔️ 2. Section 80CCD(2) — Employer’s NPS Contribution

Allowed only if:

• Employer contributes to employee’s NPS Tier-I account.

Limit:

• Up to 10% of salary (basic + DA) OR

• 14% for Central Govt employees

This remains fully allowed in the new regime.

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✔️ 3. 80CCH — Agniveer Corpus Fund

Entire contribution fully deductible.

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✔️ 4. Disability Allowances (Transport & Medical)

Certain disability-related benefits continue for:

• Employees with disability

• Parents of disabled children

(Based on CBDT notification; remains applicable)

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✔️ 5. Home Loan: Interest on Let-Out Property

New regime does not allow deduction for self-occupied home, but:

• If property is let-out, interest deduction up to actual amount is allowed.

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🚫 Most popular deductions NOT allowed in New Regime

• 80C (LIC, PPF, ELSS, Home Loan Principal)

• 80D (Medical insurance)

• 80E (Education loan)

• 80G (Donations)

• 80TTA / 80TTB (Savings interest)

• HRA

• LTA

• Home loan interest for self-occupied property

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PART 2 — Deductions Allowed in the OLD TAX REGIME (Full List — 80C to 80U)

If you choose Old Regime, you get access to the entire list below.

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SECTION 80C — Most Popular Tax Saving Options (Limit: ₹1,50,000)

Allowed investments/payments:

• Life insurance premium

• PPF

• ELSS mutual funds

• 5-year tax-saving FD

• Sukanya Samriddhi Yojana

• Children's tuition fees

• Home loan principal repayment

• EPF contribution

Maximum deduction: ₹1,50,000

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SECTION 80CCC — Pension Funds

Investment in annuity plans
Included within ₹1,50,000 limit.

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SECTION 80CCD(1) — NPS (Individual Contribution)

Deduction up to:

• 10% of salary (salaried)

• 20% of gross income (self-employed)

Counts within ₹1,50,000 80C limit.

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SECTION 80CCD(1B) — Additional NPS Deduction ₹50,000

Over and above 80C limit.

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SECTION 80D — Medical Insurance Premium

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SECTION 80DD — Dependent with Disability

• ₹75,000 (40% disability)

• ₹1,25,000 (80% disability)

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SECTION 80DDB — Medical Treatment for Specific Diseases

• Up to ₹40,000 (below 60)

• Up to ₹1,00,000 (senior citizen)

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SECTION 80E — Interest on Education Loan

No upper limit
Allowed for 8 years.

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SECTION 80EE — Additional Home Loan Interest (First-Time Buyer)

Up to ₹50,000 (specific eligibility applies).

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SECTION 80EEA — Affordable Housing Interest

Up to ₹1,50,000
(Available only if property value & stamp duty conditions met.)

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SECTION 80G — Donations

Varies:

• 100% deduction

• 50% deduction

• With/without limits

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SECTION 80GG — Rent Paid (if HRA Not Received)

Deduction: ₹60,000/year max.

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SECTION 80TTA — Interest on Savings Account

Up to ₹10,000 (non-senior citizens).

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SECTION 80TTB — Savings Interest for Senior Citizens

Up to ₹50,000.

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SECTION 80U — Disability (Taxpayer)

• ₹75,000 (40% disability)

• ₹1,25,000 (80% disability)

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Comparison: Old vs New Regime (FY 2025–26)

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How to Decide Which Regime to Choose (2025 Rule)

Choose New Regime if:

• You don’t invest much

• You don’t have home loan

• You can’t exhaust 80C fully

• Your employer contributes to NPS

Choose Old Regime if:

• You invest in PPF/ELSS

• You have home loan interest

• You claim HRA & LTA

• You pay medical insurance

• You want to use 80C–80U fully

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FAQs (Schema-Optimized)

Q1. Can I switch between old & new regime every year?
Yes, salaried employees can switch each year.

Q2. Are home loan benefits allowed in new regime?
Only interest for let-out property — not for self-occupied.

Q3. Is 80C available in new regime?
No, except for NPS employer contribution (80CCD(2)).

Q4. What is the maximum tax savings under old regime?
Up to ₹2–3 lakhs depending on deductions used.

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CTA — Need Help Choosing Old vs New Regime?

WonderTax experts analyze your income, investments & exemptions to choose the lowest-tax regime.

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