Previous vs New Regime Full Checklist FY 2026-27

Full listing of all tax deductions in outdated and new regime for FY 2026-27 — 80C, 80D, HRA, NPS, house mortgage, all sections defined primarily based on Price range 2026 adjustments.

In my earlier article — New Tax Regime vs Previous Regime: Who Wins in 2026? — I confirmed you break-even tables, 5 case research with precise numbers, and a transparent income-level verdict on which regime saves extra tax.

However many readers got here again with one particular follow-up. “I would like the total listing of each deduction — part by part — so I can calculate my very own quantity.”

That’s precisely what this text is. A whole reference information to each deduction and exemption accessible for FY 2026-27 (AY 2027-28), up to date for Price range 2026, the Earnings Tax Act 2025, and the Draft Earnings Tax Guidelines 2026.

One necessary clarification earlier than we start. There are two separate issues at play this 12 months:

The Earnings Tax Act 2025 has acquired Presidential assent and comes into power from 1st April 2026. That is confirmed legislation. It replaces the Earnings Tax Act 1961. Part numbers change. Deduction rules and limits stay the identical.

The Draft Earnings Tax Guidelines 2026 have been launched by CBDT on seventh February 2026 and canopy the allowance limits, perquisite valuations, and procedural guidelines beneath the brand new Act. These have been by public session and are anticipated to be formally notified earlier than 1st April 2026 — the Price range has been handed by each Homes of Parliament, Presidential assent is imminent, and gazette notification of the Guidelines is the ultimate remaining step. All main tax publications are treating these as efficient from FY 2026-27.

I’ve included all these adjustments on this article. Wherever the change comes particularly from the Draft Guidelines (somewhat than the Act or Finance Invoice itself), I’ve added a quick word: “topic to official gazette notification of the Guidelines.” That one line protects you. As soon as the Guidelines are formally notified — which is anticipated any day now — that caveat turns into irrelevant.

All Tax Deductions: Previous vs New Regime Full Checklist FY 2026-27

Half 1 — What Modified: Price range 2026 and Guidelines 2026

1. Earnings Tax Act 2025 Replaces the 1961 Act

From 1st April 2026, the Earnings Tax Act 2025 is the operative legislation. The acquainted part numbers — 80C, 80D, 80E, 80CCD — not exist. Your Type 16 (now Type 130), ITR, and all official communications will use new part numbers. The deductions and their limits are an identical — solely the numbering has modified.

Key renumbering related to deductions:

I’ll reference each outdated and new part numbers all through so you aren’t confused when your CA or employer makes use of an unfamiliar quantity.

2. “Tax 12 months” Replaces “Monetary 12 months” and “Evaluation 12 months”

Beneath the brand new Act, “Monetary 12 months” is now known as “Tax 12 months.” The idea of a separate “Evaluation 12 months” not exists — revenue is taxed within the Tax 12 months itself. So FY 2026-27 = Tax 12 months 2026-27. I’ll proceed utilizing FY and AY on this article since most readers know these phrases.

3. Part 80TTB Raised to Rs.1 Lakh for Senior Residents

Probably the most important deduction change from Price range 2026. The curiosity revenue deduction for senior residents has been raised from Rs.50,000 to Rs.1 lakh per 12 months. Covers curiosity from financial savings accounts, FDs, recurring deposits, and publish workplace deposits. Out there beneath outdated regime solely.

Sensible affect: A senior citizen with Rs.15 lakh in FDs at 7.5% earns Rs.1.12 lakh in annual curiosity. Beneath the outdated restrict, Rs.62,000 was taxable. Beneath the brand new Rs.1 lakh restrict, solely Rs.12,000 is taxable. A significant real-world saving.

4. TDS Threshold on Curiosity Doubled for Senior Residents

Banks is not going to deduct TDS on curiosity till it crosses Rs.1 lakh per 12 months per financial institution for senior residents. Was Rs.50,000 earlier. Higher money circulate for retirees with a number of FDs.

5. Type 15H Centralised

Senior residents can now submit a single Type 15H by the NSDL or CDSL portal and it routinely applies to all linked banks. No extra separate submission at every financial institution.

6. No Change in Slabs, Normal Deduction, or 87A Rebate

All the following proceed unchanged:

• New regime slabs and Rs.4 lakh fundamental exemption
• Rs.75,000 customary deduction beneath new regime
• Rs.50,000 customary deduction beneath outdated regime
• Rs.60,000 Part 87A rebate — zero tax as much as Rs.12 lakh taxable revenue
• All 80C, 80D, NPS, HRA, house mortgage deduction limits

Adjustments from Draft Guidelines 2026 (Topic to official gazette notification — anticipated earlier than 1st April 2026)

Kids’s Training Allowance — 30x enhance From Rs.100/month/youngster to Rs.3,000/month/youngster (as much as 2 youngsters). Annual profit: Rs.72,000 for 2 youngsters. Unchanged since 1997. Previous regime solely.

Hostel Expenditure Allowance — 30x enhance From Rs.300/month/youngster to Rs.9,000/month/youngster (as much as 2 youngsters). Annual profit: Rs.2,16,000 for 2 youngsters in hostel. Previous regime solely.

Mixed training + hostel for 2 youngsters in hostel: Rs.2,88,000/12 months — towards simply Rs.9,600 right this moment.

HRA — 50% Metropolis Checklist Expanded from 4 to eight Cities At present Mumbai, Delhi, Chennai, Kolkata qualify for 50% HRA exemption. From FY 2026-27: Bengaluru, Hyderabad, Pune, and Ahmedabad added. Staff in these 4 cities transfer from the 40% bracket to the 50% bracket for HRA calculation.

Affect: An individual in Bengaluru with Primary Rs.80,000/month will get extra Rs.8,000/month (10% of Primary) in HRA exemption — Rs.96,000/12 months additional. Previous regime solely.

Meal Vouchers — 4x enhance From Rs.50/meal to Rs.200/meal. Applies to subsidised meals by workplace canteen or meals vouchers (Sodexo, Pluxee, Zaggle and so on.). Out there beneath each outdated and new regimes — one of many few Draft Guidelines adjustments that advantages new regime taxpayers too.

For an worker utilizing meal vouchers on all working days: roughly Rs.50,000–Rs.60,000/12 months in extra exemption.

Employer Presents — 3x enhance From Rs.5,000/12 months to Rs.15,000/12 months. Presents, vouchers, and tokens from employer as much as this restrict will not be taxable. Out there in each regimes.

Employer Medical Mortgage — 10x enhance Curiosity-free loans from employer for therapy of specified illnesses — from Rs.20,000 to Rs.2 lakh. Not taxable as perquisite as much as this restrict. Out there in each regimes.

Employer Training Facility for Kids — elevated Training offered by employer (whether or not in employer-owned establishment or another establishment) to worker’s youngsters — from Rs.1,000/month/youngster to Rs.3,000/month/youngster. This can be a perquisite rule — completely different from the Part 10(14) youngsters’s training allowance above.

Transport Allowance for Disabled Staff — main hike From Rs.3,200/month flat to:

• Metro cities: Rs.15,000/month + DA
• Different cities: Rs.8,000/month + DA Out there in each regimes.

Automobile Perquisite Valuation — goes up (tax adverse) That is the one change that will increase tax legal responsibility. Month-to-month taxable perquisite values for employer-provided vehicles used partly for private functions have been revised upward — practically 3x in some circumstances. Impacts each regimes because it impacts taxable wage. In case your employer gives a automobile for private use, your taxable wage shall be larger from FY 2026-27.

Half 2 — What You CAN Declare within the New Regime

The brand new regime just isn’t a zero-deduction regime. Right here is the whole confirmed listing.

Normal Deduction — Rs.75,000 All salaried workers and pensioners. No documentation required. Rs.25,000 greater than outdated regime — one of many few areas the place new regime is definitively higher.

Employer NPS Contribution — Part 80CCD(2) [New Act: Section 124] Employer’s contribution to NPS Tier-1 — not included in taxable wage in each regimes:

• Non-public sector: As much as 14% of Primary + DA
• Authorities workers: As much as 14% of Primary + DA

No higher rupee ceiling. Most underused deduction within the new regime. Ask your HR to restructure CTC so a portion of employer contribution goes to NPS. Your employer’s price doesn’t change. Your taxable revenue reduces.

For a non-public sector worker with Primary Rs.10 lakh, employer can route Rs.1 lakh to NPS. At 20% tax slab that saves Rs.20,800 per 12 months — with out you investing a single additional rupee.

House Mortgage Curiosity on Let-Out Property — Part 24(b) Full curiosity paid — no ceiling. Each regimes. The Rs.2 lakh cap applies solely to self-occupied property and solely within the outdated regime.

Household Pension Deduction Decrease of Rs.25,000 or one-third of household pension acquired.

Part 80CCH — Agniveer Corpus Fund Each personal contribution and authorities’s matching contribution to Seva Nidhi — totally deductible. Each regimes.

Gratuity — Part 10(10)

• Authorities workers: Totally exempt
• Non-public sector (Gratuity Act lined): As much as Rs.20 lakh
• Non-public sector (not lined): Decrease of half month’s wage per 12 months of service or Rs.20 lakh

Depart Encashment at Retirement — Part 10(10AA)

• Authorities workers: Totally exempt
• Non-public sector: As much as Rs.25 lakh

VRS Compensation — Part 10(10C) Exempt as much as Rs.5 lakh.

Life Insurance coverage Maturity — Part 10(10D) Tax-free in each regimes topic to circumstances. Insurance policies issued after 1st April 2023 with annual premium above Rs.5 lakh — maturity proceeds taxable at slab charges.

Employer Contribution Cap — Rs.7.5 Lakh Mixed employer contribution to EPF + NPS + Superannuation tax-free as much as Rs.7.5 lakh per 12 months. Extra taxable. Each regimes.

Meal Vouchers — Rs.200/meal (Topic to official gazette notification of Guidelines) Out there in each outdated and new regimes — one of many few draft rule adjustments that advantages new regime taxpayers.

Employer Presents — Rs.15,000/12 months (Topic to official gazette notification of Guidelines) Each regimes.

Employer Medical Mortgage — As much as Rs.2 Lakh (Topic to official gazette notification of Guidelines) Curiosity-free employer loans for specified illness therapy not taxable. Each regimes.

Transport Allowance — Disabled Staff (Topic to official gazette notification of Guidelines) Rs.15,000/month + DA (metro) / Rs.8,000/month + DA (others). Each regimes.

What Is NOT Out there within the New Regime

No exceptions:

80C (Part 123), 80CCD(1B) personal NPS (Part 124), 80D (Part 126), 80DD (Part 127), 80DDB (Part 128), 80E (Part 129), 80EEA (Part 130), 80EEB (Part 131), 80G (Part 133), 80GG (Part 134), 80TTA, 80TTB, 80U, HRA — Part 10(13A), LTA — Part 10(5), Part 24(b) for self-occupied house mortgage, skilled tax, youngsters’s training allowance, hostel allowance.

Half 3 — Full Previous Regime Deduction Checklist

Wage-Associated Exemptions

Normal Deduction — Rs.50,000 All salaried workers and pensioners.

HRA — Home Hire Allowance — Part 10(13A) Exempt quantity is the lowest of:

• Precise HRA acquired from employer
• Hire paid minus 10% of Primary wage
• 50% of Primary wage — for Mumbai, Delhi, Chennai, Kolkata, and from FY 2026-27: Bengaluru, Hyderabad, Pune, Ahmedabad (topic to gazette notification of Guidelines)
• 40% of Primary wage — all remaining cities

Sensible instance: Primary Rs.60,000/month, HRA Rs.25,000/month, Hire Rs.22,000/month in Bengaluru:

• Precise HRA = Rs.25,000
• Hire minus 10% of Primary = Rs.16,000
• 50% of Primary (new) = Rs.30,000 (vs 40% = Rs.24,000 earlier) Lowest = Rs.16,000/month = Rs.1,92,000/12 months on this instance. However for larger hire ranges, the 50% metropolis improve materially will increase the exempt quantity.

If you don’t obtain HRA from employer — see Part 80GG.

LTA — Depart Journey Allowance — Part 10(5) Precise transport prices (air/prepare/bus) inside India. Two journeys in a 4-year block. Present block: 2022–2025. Accommodations, meals, sightseeing not lined. Air journey — capped at economic system class fare for shortest route.

Kids’s Training Allowance — Part 10(14) From FY 2026-27: Rs.3,000/month/youngster, as much as 2 youngsters (Rs.72,000/12 months for 2 youngsters). (Topic to official gazette notification of Guidelines. Present operative restrict: Rs.100/month/youngster.) Previous regime solely.

Hostel Expenditure Allowance — Part 10(14) From FY 2026-27: Rs.9,000/month/youngster, as much as 2 youngsters (Rs.2,16,000/12 months for 2 youngsters). (Topic to official gazette notification of Guidelines. Present operative restrict: Rs.300/month/youngster.) Previous regime solely.

Meal Vouchers From FY 2026-27: Rs.200/meal not taxable. (Topic to official gazette notification of Guidelines. Present restrict: Rs.50/meal.) Out there in each regimes.

Skilled Tax — Part 16(iii) Precise skilled tax deducted from wage. Usually Rs.2,400–Rs.2,500/12 months in Karnataka and Maharashtra.

House Mortgage — Part 24(b)

Self-Occupied Property As much as Rs.2 lakh/12 months on curiosity paid.

• Mortgage have to be for buy or building — not restore (Rs.30,000 restrict)
• Development should full inside 5 years of mortgage — else restrict drops to Rs.30,000
• Joint homeowners with joint mortgage: every co-owner claims Rs.2 lakh independently — Rs.4 lakh for a pair
• Pre-construction curiosity: 5 equal instalments from 12 months building completes

Let-Out Property Full curiosity — no ceiling. Each regimes. Loss set off towards different heads capped at Rs.2 lakh/12 months; steadiness carried ahead 8 years.

Chapter VI-A Deductions

Part 80C [New Act: Section 123] — Rs.1.5 Lakh Mixed Ceiling

All the following mixed — most Rs.1.5 lakh per 12 months:

• EPF — Personal contribution solely. Employer’s 12% individually exempt.
• PPF — 7.1% curiosity, tax-free. 15-year lock-in. No market threat.
• ELSS — 3-year lock-in. Market-linked returns. LTCG above Rs.1.25 lakh at 12.5%.
• Life Insurance coverage Premium — Pure time period or conventional with sum assured not less than 10x premium. Insurance policies after 1st April 2023 with premium above Rs.5 lakh — maturity taxable.
• House Mortgage Principal Reimbursement — Principal portion of EMI. Stamp responsibility and registration in buy 12 months additionally qualify.
• Sukanya Samriddhi Yojana (SSY) — Woman youngster as much as age 10. At present 8.2%, tax-free together with maturity. Finest beneath 80C.
• NSC — 5-year lock-in. At present 7.7%. Curiosity accrued every year (besides final) deemed reinvested — additionally qualifies as separate 80C deduction.
• 5-12 months Tax-Saving FD — Scheduled financial institution or publish workplace. 5-year lock-in. Curiosity is taxable.
• SCSS — For 60+. At present 8.2%. Most Rs.30 lakh.
• Tuition Charges — Full-time training in Indian college/faculty/college for as much as 2 youngsters. Solely tuition charges — not improvement charges, transport, or donations.
• NPS personal contribution beneath Part 80CCD(1) — Inside Rs.1.5 lakh ceiling.

Part 80CCD(1B) [New Act: Section 124] — Further NPS Rs.50,000 Over and above Rs.1.5 lakh ceiling. Personal NPS Tier-1 contribution solely. Previous regime solely. Mixed with 80C = Rs.2 lakh most on these fronts.

Part 80CCD(2) [New Act: Section 124] — Employer NPS Contribution Each regimes. Non-public sector: 10% of Primary + DA. Authorities: 14% of Primary + DA. No higher rupee ceiling.

Part 80D [New Act: Section 126] — Well being Insurance coverage Premium

Preventive well being check-up included inside limits — as much as Rs.5,000/12 months. May be paid in money. All different premiums have to be non-cash.

Part 80DD [New Act: Section 127] — Disabled Dependent Partner, youngster, father or mother, or sibling with incapacity:

• Incapacity 40%+: Rs.75,000 flat — not expense-linked
• Extreme incapacity 80%+: Rs.1,25,000 flat Type 10-IA from licensed medical authority required.

Part 80DDB [New Act: Section 128] — Specified Illness Therapy Precise therapy bills for self or dependent:

• Under 60: As much as Rs.40,000
• Senior residents: As much as Rs.1 lakh

Qualifying illnesses: neurological circumstances (dementia, Parkinson’s, motor neuron illness, ataxia, chorea, aphasia), malignant cancers, full-blown AIDS, power renal failure, haemophilia, thalassemia. Certificates from specialist at authorities hospital required.

Part 80E [New Act: Section 129] — Training Mortgage Curiosity

• No higher restrict on deduction
• 8 consecutive years from 12 months compensation begins — or till totally repaid
• Mortgage from financial institution, monetary establishment, or authorized charitable establishment solely — not household
• Increased training (any course after Class 12) — self, partner, youngsters, or authorized ward. India or overseas.

Most underappreciated deduction in the complete tax code. For Rs.25 lakh mortgage at 10%, annual curiosity of Rs.2–2.5 lakh is totally deductible. No ceiling in any respect.

Part 80EEA [New Act: Section 130] — Inexpensive Housing House Mortgage Further Rs.1.5 lakh on curiosity over Part 24(b), if:

• Mortgage sanctioned: 1st April 2019 to thirty first March 2022
• Stamp responsibility worth: Not above Rs.45 lakh
• No different residential property on date of sanction Window closed for brand new loans. Present eligible debtors proceed claiming till 8-year restrict.

Part 80EEB [New Act: Section 131] — EV Mortgage Curiosity As much as Rs.1.5 lakh. Loans sanctioned 1st April 2019 to thirty first March 2023. Closed for brand new loans.

Part 80G [New Act: Section 133] — Donations

• 100% with out restrict: Nationwide Defence Fund, PM Nationwide Aid Fund, Nationwide Kids’s Fund, Clear Ganga Fund, Swachh Bharat Kosh
• 50% with out restrict: PM Drought Aid Fund, Jawaharlal Nehru Memorial Fund
• 100% with 10% of adjusted gross revenue ceiling: Accredited analysis associations, authorized universities
• 50% with 10% ceiling: All different authorized charitable establishments Donations above Rs.2,000 have to be non-cash.

Part 80GG [New Act: Section 134] — Hire With out HRA In the event you pay hire however no HRA from employer, or self-employed. Lowest of:

• Rs.5,000/month (Rs.60,000/12 months)
• 25% of complete revenue
• Hire paid minus 10% of complete revenue

Situation: You, your partner, or minor youngster shouldn’t personal a home at place of employment.

Part 80TTA — Financial savings Account Curiosity Non-senior residents solely. As much as Rs.10,000/12 months on financial savings account curiosity. Banks, cooperative banks, publish workplace. FD curiosity doesn’t qualify.

Part 80TTB — Senior Citizen Curiosity Earnings — RAISED IN BUDGET 2026 For 60+. Raised from Rs.50,000 to Rs.1 lakh per 12 months — Price range 2026 confirmed change. Covers financial savings accounts, FDs, recurring deposits, publish workplace deposits. Replaces 80TTA for senior residents.

Part 80U — Self with Incapacity

• Incapacity 40%+: Rs.75,000
• Extreme incapacity 80%+: Rs.1,25,000 Certificates from medical authority required.

Full Abstract Desk

Rows marked * are from Draft Earnings Tax Guidelines 2026. The Earnings Tax Act 2025 has acquired Presidential assent. The Guidelines are anticipated to be formally notified earlier than 1st April 2026, topic to gazette notification.

The way to Use This Article –

Step 1: Undergo the outdated regime column and mark each deduction that genuinely applies to your state of affairs.

Step 2: Use your precise numbers — not the utmost limits. Your HRA exemption is formula-based. Your 80D is determined by precise premium. Your 80C is determined by what you truly make investments.

Step 3: Subtract Rs.50,000 (outdated regime customary deduction). This offers your internet deduction past customary.

Step 4: Go to the break-even desk in New Tax Regime vs Previous Regime: Who Wins in 2026? and examine whether or not your complete crosses the brink to your revenue stage.

Step 5: If it crosses, calculate precise tax beneath each regimes. If not, new regime wins — go along with it.

That 30-minute train might prevent Rs.20,000 to Rs.1 lakh this 12 months.

Word: All deductions mirror provisions of the Earnings Tax Act 2025 and Finance Invoice 2026, relevant from FY 2026-27 (AY 2027-28). The Earnings Tax Act 2025 has acquired Presidential assent and is in power from 1st April 2026. Objects marked * are from the Draft Earnings Tax Guidelines 2026 launched by CBDT on seventh February 2026 — Finance Invoice 2026 has been handed by each Homes of Parliament and these guidelines are anticipated to be formally notified earlier than 1st April 2026 by way of gazette notification. Previous part numbers from the 1961 Act are included alongside new Act numbers for reference. The 80TTB enhance to Rs.1 lakh is a confirmed Price range 2026 change. Please seek the advice of a certified tax skilled for recommendation particular to your state of affairs.