Is 80C allowed in the new regime?

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No, deductions under Section 80C are generally not allowed in the new tax regime in India.

Can we submit 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.

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.

Are 80C and 80D applicable in the new tax regime?

The new tax regime provides lower tax rates but eliminates key deductions, including HRA, Section 80C, and Section 80D. While it simplifies tax filing, it may not be beneficial for taxpayers who rely on exemptions for rent, tax-saving investments, and health insurance.

Does 80C exist in the new tax regime?

The new regime is designed with lower tax rates but without most exemptions and deductions, including 80C. If you want to claim investments such as PPF, ELSS, life insurance premiums, or tuition fees under 80C, you must opt for the old tax regime while filing your ITR. Q2.

How to save tax smartly under the new regime without 80C or HRA | ITR filing 2025 | Income Tax

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Is 80C applicable in the new tax regime in 2025?

While the new regime offers lower tax rates, it does not allow popular deductions such as Section 80C (Rs 1.5 lakh for specified investments), Section 80D (Rs 25,000/Rs 50,000 for health insurance premiums), and Section 80TTA (Rs 10,000 deduction for savings account interest).

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.

What is 80C deduction under new regime?

Section 80C provides deductions up to Rs.1.5 lakhs on various investments and expenses. These include deductions for life insurance premiums, PPF, home loan principal repayment, ELSS mutual funds, Sukanya Samriddhi Yojana, and many more.

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).

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.

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.

Which 80C is best?

Top tax* saving investment options under section 80C

  • Equity Linked Savings Scheme (ELSS) ...
  • National Pension Scheme (NPS) Tier-I. ...
  • Public Provident Fund (PPF) ...
  • Employee Provident Fund (EPF) ...
  • Fixed Deposits. ...
  • Sukanya Samriddhi Yojana (SSY) ...
  • Unit-Linked Insurance Plan (ULIP)

What exemptions are allowed in the new tax regime?

The basic tax exemption limit of ₹2.5 lakhs under the old tax regime increased to ₹3 lakhs under the new tax regime in Budget 2024 and further increased to ₹4 lakhs in Union Budget 2025. The latest exemption limit is applicable from 01 April 2023 and it continues in 2024 as well when opting for the new tax regime.

What is the maximum limit of 80C?

Total 80C limit as per the Income Tax Act, 1961 is Rs. 1.5 lakh per financial year. Following are some of the 80C deduction options available as per the Income Tax Act, 1961: Life Insurance Premium.

How to reduce tax in a new regime?

How to Save Tax in India? 10 Smart and Legal Ways for FY 2025-26

  1. Use Section 80C to Save up to ₹1.5 Lakh. ...
  2. Invest in National Pension System (NPS) – Section 80CCD(1B) ...
  3. Claim House Rent Allowance (HRA) ...
  4. Interest on Home Loan – Section 24(b) ...
  5. Tax Benefits on Education Loan – Section 80E.

What rebate is allowed in the new tax regime?

Under the new regime, a rebate of Rs.25,000 is allowed for an income up to Rs. 7 lakhs. Under the old regime, a rebate of Rs. 12,500 is allowed for an income up to Rs. 5 lakhs. For FY 2025-26, rebate of Rs. 60,000 is allowed under the new regime for an income up to Rs. 12 lakhs.

Can I claim both 80C and 80D?

These deductions are independent of each other and do not overlap, allowing you to take full advantage of both. For example, you can invest ₹1.5 lakh in eligible 80C instruments like PPF or life insurance and also pay health insurance premiums for yourself and your parents to claim deductions under 80D.

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.

Which deductions are not allowed in the new tax regime?

Deductions Not Allowed Under the New Income Tax Regime

  • Deductions under Sections 80C, 80CCC, 80CCD, and 80JJAA. ...
  • Deductions under Section 80D, 80DD, and 80DDB. ...
  • Interest incurred on home loan (Section 24b) ...
  • Leave Travel Concession (LTC) ...
  • House Rent Allowance (HRA) ...
  • Allowance for Income of Minor. ...
  • Standard Deduction.

Can I claim 80D 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.

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 the disadvantages of the new tax regime?

The old regime offers more exemptions and deductions, allowing for greater tax planning and savings. However, it has a complex structure and limited flexibility. The new regime provides lower tax rates and a simpler structure but has fewer exemptions and limited tax planning opportunities.

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.

Which deductions are allowed in the new tax regime for senior citizens?

A Senior/Super Senior citizen can claim a deduction upto Rs. 50,000/- u/s 80TTB in respect of interest income earned on savings bank accounts, bank deposits, or any deposit with the post office or co-operative banks.