Can 80C be claimed in the new tax regime?

What are the drawbacks of the new regime?

A key feature of the new regime is the limited scope for deductions. Taxpayers cannot claim most common deductions available under the old regime, including Section 80C (investments in LIC, PPF, ELSS, etc.), Section 80D (health insurance premiums), Section 80E (education loan interest), and House Rent Allowance (HRA).

Can I claim both 80C and 80D?

3. Can I claim deduction under both Section 80D and Section 80C? Yes, you can claim a deduction of up to ₹ 1.5 lakh under Section 80C^ and of upto ₹ 1 lakh under Section 80D^ of the Income Tax Act, 1961 in a single financial year.

Is 80D exempted in the new tax regime?

The new tax regime has eliminated nearly 70 tax deductions that were previously allowed in the old regime. Under the new regime, deductions for health insurance premiums (Section 80D) and investments up to ₹1.5 lakh (Section 80C) are not available.

What are the deductions allowed in the new tax regime for FY 2025 26?

For FY 2025–26, the new tax regime effectively makes income up to ₹12 lakh tax-free due to the enhanced rebate of ₹60,000. In addition, a standard deduction of ₹75,000 is available for salaried individuals, making a salary income of up to ₹12.75 lakh effectively tax-free.

Is PPF tax free in the new tax regime?

Understanding PPF in the New Tax Regime

Yes, this means most deductions under Section 80C , including PPF, are not available in the new regime. So, choosing the new regime means you won't get the 80C deduction, but both your maturity amount and interest still remain tax-free.

What are standard deductions in the new tax regime?

Standard Deduction.

For tax year 2026, the standard deduction increases to $32,200 for married couples filing jointly. For single taxpayers and married individuals filing separately, the standard deduction rises to $16,100 for tax year 2026, and for heads of households, the standard deduction will be $24,150.

What is taxable in the new tax regime?

The new income tax slabs and rates under the new regime for the FY 2025-26 (AY 2026-27) are as follows: Rs. 0 to Rs. 4 lakh – Nil, Rs. 4 lakh to Rs. 8 lakh – 5%, Rs. 8 lakh to Rs. 12 lakh – 10%, Rs. 12 lakh to Rs. 16 lakh – 15%, Rs. 16 lakh to Rs. 20 lakh – 20%, Rs. 20 lakh to Rs. 24 lakh – 25%, and income above Rs. 24 ...

Is 80C available in the new tax regime?

Section 80C provides deductions on various investments up to ₹ 1.5 lakh per year from your taxable income. In comparison, Section 80CCC provides a deduction of up to ₹ 1.5 lakh per annum for the contribution made by an individual towards specified pension funds.

Who is not eligible for an 80C deduction?

Eligibility Criteria for Deductions Under Section 80C

Note that companies, partnerships and LLPs can't claim deductions under this section. 2. Eligible Investment and Expenses: Only the above-mentioned investment plans and expenses such as term life insurance, ULIPs, PPF, tuition fees, etc.

What deductions are not allowed in the new tax regime?

Which Exemptions and Deductions Are Not Claimable Under the New Regime?

• The standard deduction under section 80TTB/80TTA.
• Entertainment allowance and professional tax on salaries.
• Leave Travel Allowance (LTA).
• House Rent Allowance (HRA).
• Helper allowance.
• Minor child income allowance.
• Allowance to MPs/MLAs.

Can I claim 80C in the new tax regime?

Those following the new tax regime, however, will not be able to claim these deductions—making Section 80C relevant mainly for old regime taxpayers.

How is 12 lakh tax free?

The new regime is beneficial as there is zero tax liability for income upto Rs. 12 lakhs for FY 2025-26. Can you pay zero tax on Rs 12 lakhs salary ? Yes , You can pay Zero tax on Rs 12 lakhs salary by claiming deduction and exemption like HRA exemption , 80C deduction , Standard deduction , Housing loan interest etc.

Is term insurance 80C or 80D?

Yes, premiums for term insurance are tax-deductible under Section 80C and in the case of some add-ons/rider additional deduction may be availed u/s 80D. These deductions can help decrease your taxable income, leaving you with less tax outgo and potentially increase your savings.

Can NRI claim deduction US 80C?

Most of the deductions under Section 80 are also available to NRIs. For FY 2023-24, a maximum deduction of up to Rs 1.5 lakh is allowed under Section 80C from gross total income for an individual.

Can I add 80D in a new tax regime?

No, an individual or HUF cannot claim a deduction under sec 80D for payment of insurance premium if you choose to pay tax under the new tax regime as the deduction is available only under the old tax regime.

What is the exemption for a new tax regime?

In the new tax regime, no income tax is payable upto the total income of INR 7 lakh. Q.

Which is better, the tax regime old or new?

The Old vs New Tax Regime debate centers on tax slabs and deductions. Income up to ₹12 lakh is tax-free under the new regime, due to rebate. Beyond ₹25 lakh, the old regime is better if deductions exceed ₹8 lakh. Between ₹12 - 25 lakh, the choice depends on your deduction level.

What happens if I choose a new tax regime?

The old regime allows various deductions and exemptions, while the new regime offers lower tax rates but no deductions. Key differences include tax rates and availability of deductions. Can I switch between the old and new tax regimes every year? Salaried individuals can switch annually by informing their employer.

Can we go back from the new regime to the old regime?

An individual with non business income can switch between the new and old tax regimes every year. Within the same year, again it is emphasized that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I T Act.