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

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No, the deduction under Section 80C is not applicable in the new tax regime for the financial year 2025-2026. Taxpayers must choose the old tax regime to claim the benefits of Section 80C deductions.

Is 80C deduction allowed 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 there any deduction in the new tax regime 2025?

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.

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.

Is 80D allowed in the new 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.

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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 both 80D and 80C?

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 80TTB allowed in the new tax regime?

Imagine Mrs. Sharma, age 65, with interest income of ₹ 35,000 from fixed deposits and savings in a year. Under the old tax regime, she could deduct that full ₹ 35,000 (because it's under the ₹ 50,000 limit via Section 80TTB). But under the new tax regime, that ₹ 35,000 becomes fully taxable — no deduction is available.

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).

What is the new deduction for 2025?

From 2025 to 2028, adults age 65+ can claim a temporary bonus deduction of $6,000 if single or $12,000 if married filing jointly. For the 2025 tax year, the total standard plus bonus deduction for those age 65 and older is $21,750 for a single person and $43,500 for a married couple filing a joint return.

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.

Which tax regime is better for 12 lakhs?

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.

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 are the deductions for the new tax regime 2025?

Tax-free income in new tax regime (Financial Year 2025-26)

This means that individuals earning up to Rs. 12 lakh will have their tax liability effectively reduced to zero. For salaried employees, an additional standard deduction of Rs. 75,000 elevates the tax-free income threshold to Rs. 12.75 lakh.

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 a senior citizen claim both standard deduction and 80TTB?

No, you cannot claim both 80TTA and 80TTB deductions in the same financial year. While 80TTA applies to individuals under 60, 80TTB is exclusively for senior citizens, providing a higher deduction limit on interest income. Is 80TTB applicable in new tax regime? No, 80TTB is not applicable under the new tax regime.

Is there any exemption on FD interest in the new tax regime?

The new TDS exemption limit for Fixed Deposit is ₹50,000 for regular citizens and ₹1 lakh for senior citizens - this is applicable for FY 2025-26. The TDS applicable on FD interest is 10%, if you provide PAN card to the bank and 20% if you don't provide PAN card information to the bank.

Can I claim 80C in the new tax 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. Deduction under section 80C is not available under the new regime.

Can I claim section 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.

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.

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.

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.