Is 80C available in the new tax regime?

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No, the deduction under Section 80C is not available in the new tax regime. The new tax regime offers lower tax rates but fewer exemptions and deductions, including the popular Section 80C benefit.

Are 80C and 80D allowed 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.

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.

What is Section 80C of the 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.

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.

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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 can I claim in the new tax regime?

The new tax regime allows salaried people and senior citizens earning pensions a standard deduction of ₹75,000. Family Pension: If you have a family pension income, the new regime offers a deduction for it. You can claim a deduction of ₹25,000 or one-third of the pension amount, whichever is lower.

Is 80C removed?

No, Section 80C does not apply under the new tax regime as of FY 2025–26. The benefit of claiming deductions of up to Rs. 1.5 lakh under Section 80C is only available in the old tax regime. This includes tax savings through investments such as PPF, ELSS, or life insurance premiums.

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 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 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.

How much can I save with Section 80C?

Individuals and Hindu Undivided Families (HUFs) can save tax under Section 80C. You can avail of a maximum deduction of Rs. 1.5 lakh every year from your gross income. Additionally, you will save on surcharge as applicable and 4% education cess.

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.

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.

Is new tax regime good for everyone?

The new tax regime benefits individuals with minimal deductions or those who prefer a simpler filing process. On the other hand, the old tax regime is ideal for those who can claim significant deductions and exemptions.

Can I claim 80C in the new tax regime?

Deductions under Sections 80C, 80CCC, 80CCD, and 80JJAA

However, these deductions are no longer allowed under the new tax regime.

Which is better, the tax regime old or new?

The new tax regime offers a simplified tax structure with limited deductions compared to the old regime. While you can't claim popular deductions like those under Section 80C, you can still avail a standard deduction of ₹75,000 for the financial year 2024-25.

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.

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 to do if 80C is full?

How to Save Taxes Beyond Section 80C?

  1. Section 80D: Health Insurance Premiums. ...
  2. Home Loan Interest Under Section 24(b) ...
  3. HRA Benefits. ...
  4. Section 80E: Education Loan Interest. ...
  5. Donations under Section 80G. ...
  6. Section 80TTA and 80TTB: Interest on Savings and Deposits for Seniors. ...
  7. National Pension System (NPS) under Section 80CCD.

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 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 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.

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.