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Income-tax deductions and exemptions in New Tax Regime and Old Tax Regime 2025-26: Full List
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4 min read | Updated on February 02, 2025, 15:52 IST
SUMMARY
Full list of Income-tax deductions and exemptions in Old Tax Regime and New Regime for AY 2025-26: Check all tax concessions available to taxpayers for ITR filing for AY 2025-26.
In Budget 2025, the government didn't make any changes to the old tax regime. | Image: Shutterstock
Income-tax deductions under Old Tax Regime and New Regime for 2025-26: The income-tax deductions and exemptions announced until the last year's budget will apply when filing taxes for Financial Year (FY) 2024-25 or Assessment Year (AY) 2025-26. The due date for filing of income-tax return (ITR) for AY 2025-26 is July 31, 2025. The same deductions and exemptions will also apply in FY 2025-26 or AY 2026-27.
In Budget 2025, the government didn't make any changes to the old tax regime. Also no new deductions were added to the new tax regime. Instead, Finance Minister Nirmala Sitharaman has adjusted slabs, rates and rebate in the new regime to make income up to ₹12 lakh tax free.
The following is the list of tax deductions available under the old tax regime and the new regime that will apply while filing taxes for AY 2025-26:
Income-tax deductions and exemptions under the Old Tax Regime for 2025-26
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Deduction under Section 24(b): In case of self-occupied property, up to ₹2 lakh paid as interest on a housing loan can be claimed as deduction.
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Section 80C: Combined deduction of up to ₹1.5 lakh can be claimed for payments towards life insurance premium, provident fund, ELSS, PPF, SCSS, National Savings Certificate, housing loan principal, tuition fees etc.
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Section 80CCC: Annuity plan of LIC or other insurer towards Pension Scheme.
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80CCD(1): Pension Scheme of Central Government
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Section 80CCD(1B): Up to ₹50,000 deduction towards payments made to National Pension System (NPS), excluding deduction claimed under section 80CCD (1).
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Section 80CCD(2): Deduction for employer's contribution to the Pension Scheme of Central Government
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Section 80CCH: Deduction for contributions to Agnipath Scheme
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Section 80D: Deduction for health insurance premium and preventive health check-up
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Section 80DD: Deduction for maintenance or medical treatment of a Disabled Dependent
- Section 80DDB: Deduction for medical treatment of specified diseases
- Section 80E: Deduction for interest payments on loan for higher education of self or relative. Full amount paid towards interest can be claimed as deduction.
- Section 80EE: ₹50,000 deduction for interest payments on loan for residential house property (loan sanctioned between 1st April 2016 to 31st March 2017)
- Section 80EEA: Up to ₹1.5 lakh deduction for interest payments on loan for first-time residential house property acquisition (loan sanctioned between 1st April 2019 to 31st March 2022)
Section 80EEB: Up to ₹1.5 lakh deduction for interest payments on loan for purchase of Electric Vehicle (loan sanctioned between 1st April 2019 to 31st March 2023)
- Section 80G: Deduction for Donations to prescribed funds, charitable institutions
- Section 80GG: Deduction for rent paid (self-employed or HRA not part of salary)
- Section 80GGA: Deduction for donations for scientific research or rural development
- Section 80GGC: Deduction for Donations to Political Party or Electoral Trust
- Section 80TTA: Up to ₹10,000 deduction on interest received on savings bank accounts by Non-Senior Citizens
- Section 80TTB: Up to ₹50,000 deduction on interest received on deposits by resident senior citizens
- Section 80U: Deduction for a resident individual taxpayer with Disability
Income-tax deductions and exemptions under the New Tax Regime for 2025-26
- Section 24(b): Deduction from Income from House Property on interest paid on housing loan in case of let-out property
-Section 80CCD(2): Deduction for employer's contribution to NPS, deduction limit is 14% of salary
-Section 80CCH: Deduction for contributions to Agnipath Scheme
You can check your tax liability for AY 2025-26, using the following income-tax calculator:
Income Tax Calculator
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The tax relief measures proposed by finance minister Nirmala Sitharaman in Budget 2025-26, including the increase in the tax-free income limit to ₹12 lakh, revised tax slabs, and a ₹75,000 standard deduction, are expected to ease the burden on middle-class and salaried taxpayers.
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