Old Regime Only · FY 2025-26
Income Tax Deductions
Every major deduction available to Indian taxpayers — Section 80C, 80D, HRA, NPS, home loan interest and more. Most are available only if you opt for the old tax regime.
Old regime vs new regime
The deductions listed below are available under the old tax regime only (except where marked "Both"). If you choose the new regime, you trade all these deductions for lower slab rates. Whether old beats new depends on your total deduction amount — we can calculate it free.
Section 80C — ₹1,50,000 limit
All qualifying investments and payments in 80C are counted together toward a single ₹1.5 lakh cap.
| Instrument | Max deduction | Notes |
|---|---|---|
| ELSS mutual funds | ₹1,50,000 (shared) | 3-year lock-in; equity-linked growth; LTCG applies on gains above ₹1.25L |
| PPF (Public Provident Fund) | ₹1,50,000 (shared) | 15-year lock-in; interest and maturity are fully tax-free |
| EPF (Employee PF) | ₹1,50,000 (shared) | Employee contribution is deductible; taxable if withdrawn before 5 yrs |
| Life insurance premium | ₹1,50,000 (shared) | Sum assured must be ≥10× premium for policies issued after Apr 2012 |
| NSC (National Savings Certificate) | ₹1,50,000 (shared) | 5-year lock-in; interest is taxable (but also qualifies for 80C) |
| 5-year tax-saving bank FD | ₹1,50,000 (shared) | 5-year lock-in; interest is fully taxable at slab rate |
| Sukanya Samriddhi Yojana (SSY) | ₹1,50,000 (shared) | For girl child; interest and maturity tax-free |
| NPS Tier I (employee/self) | ₹1,50,000 (shared) | Also qualifies for additional 80CCD(1B) ₹50,000 |
| Home loan principal repayment | ₹1,50,000 (shared) | Only for self-occupied property; reversed if sold within 5 years |
| Tuition fees (2 children) | ₹1,50,000 (shared) | Full-time education in India; not hostel/development fees |
Additional NPS Deduction — 80CCD(1B)
| Section | Limit | Notes |
|---|---|---|
| 80CCD(1B) — NPS self contribution | ₹50,000 | Over and above 80C ₹1.5L cap. Total NPS deduction can be ₹2L/yr. |
| 80CCD(2) — Employer NPS contribution Both regimes | 10% of salary | Available in both regimes. Government employees: 14% of salary. |
Health Insurance — Section 80D
| Who | Limit |
|---|---|
| Self + spouse + children (below 60) | ₹25,000 |
| Self + spouse + children (any member 60+) | ₹50,000 |
| Parents (below 60) | ₹25,000 |
| Parents (60 or above) | ₹50,000 |
| Max combined (self + senior parents) | ₹1,00,000 |
| Preventive health check-up | ₹5,000 (within limits) |
Home Loan — Section 24(b)
| Type | Limit | Notes |
|---|---|---|
| Interest on home loan (self-occupied) | ₹2,00,000 | Under old regime; nil deduction under new regime. |
| Interest on home loan (let-out property) | Actual interest | No cap; set-off against house property income; excess loss capped at ₹2L vs other income. |
| Additional first-home buyer — 80EEA | ₹1,50,000 | Stamp duty value ≤₹45L, loan sanctioned between Apr 2019–Mar 2022. Over and above 24(b). |
Education Loan — Section 80E
| What | Limit | Notes |
|---|---|---|
| Interest on education loan | No limit | Only interest (not principal). For 8 consecutive years from first repayment. Covers self, spouse, children, or a student for whom you are legal guardian. |
HRA — House Rent Allowance
Salaried employees living in rented accommodation. The exempt amount is the least of:
- Actual HRA received from employer
- 50% of basic salary (metro: Delhi, Mumbai, Kolkata, Chennai) or 40% (non-metro)
- Rent paid minus 10% of basic salary
Self-employed individuals cannot claim HRA; they may claim 80GG (rent paid, max ₹5,000/month) if they don't own a house.
Other Useful Deductions
| Section | What | Limit |
|---|---|---|
| Standard deduction Old regime | Flat deduction for salaried & pensioners | ₹50,000 |
| Standard deduction New regime | Flat deduction for salaried & pensioners | ₹75,000 |
| 80TTA | Savings account interest (non-senior) | ₹10,000 |
| 80TTB | Interest income (senior citizens, 60+) | ₹50,000 |
| 80G | Donations to approved charities | 50% or 100% of donation |
| 80U | Disability (self) | ₹75,000 / ₹1,25,000 (severe) |
| 80DD | Maintenance of disabled dependent | ₹75,000 / ₹1,25,000 (severe) |
| 80DDB | Treatment of specified diseases (self/dependent) | ₹40,000 / ₹1,00,000 (senior) |
Based on Finance Act 2025 (FY 2025-26). Deductions marked "Old regime only" are not available if you opt for the new tax regime. Limits are per individual per financial year. This page is for information only — not a substitute for professional tax advice. Consult a CA for your specific situation.
Last updated: April 2025