HomeIncome Tax Act 2025 Deductions from Total Income (Chapter VIII) — Income-tax Act 2025 Which deductions survive in the new tax regime?
Rule / Regulation · Deductions

Which deductions survive in the new tax regime?

By CA Rajat Agrawal Updated 03 Jul 2026

In plain language

[DRAFT — confirm the surviving list in review.] Under the default new regime, the trade-off for lower slab rates is that most Chapter VIII deductions are switched off — including the ₹1,50,000 Section 123 deduction and the Section 126 health-insurance deduction.

A limited set generally still applies, most importantly the employer's NPS contribution (Section 124) and certain others. If you rely heavily on deductions, compare both regimes before choosing.

Frequently asked questions

Do I lose 80C if I choose the new regime?
Yes — the Section 123 (old 80C) deduction is not available under the new regime. The employer NPS contribution is one of the few deductions that still applies.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 03 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.

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