Tax-Saving Checklist: Deductions Still Available Under the Old Regime

If you have chosen, or are considering, the old tax regime, deductions are the reason to choose it. Under the Income-tax Act, 2025 the section numbers have changed. 80C is now section 123 and 80D is now section 126, but the limits are the same. Here is a checklist for tax year 2026-27.

Using the new regime? Most of these deductions are not available to you. See the last section for the few that are.

1. Section 123 (old 80C): up to ₹1,50,000

All of the following share one combined limit of ₹1.5 lakh:

2. NPS: an extra ₹50,000

• 80CCD(1B): an additional ₹50,000 for your own NPS contribution, over and above the ₹1.5 lakh.
• Employer’s NPS contribution (80CCD(2)): up to 10% of salary in the old regime (14% in the new regime).

3. Section 126 (old 80D): health insurance

• Preventive health check-up: up to ₹5,000, within these limits. Can be paid in cash.
• Senior citizens without insurance: medical expenses up to ₹50,000 can be claimed.
• Maximum possible: ₹1 lakh, for a senior-citizen taxpayer who also pays for senior-citizen parents.

4. Home loan interest

• Self-occupied house: interest up to ₹2 lakh a year (now under section 22 of the 2025 Act, formerly 24(b)).
• Let-out house: all the interest can be deducted from rental income. Any loss above ₹2 lakh can’t be set off against other income in the same year. It is carried forward for 8 years.
• Construction must be completed within 5 years for the full ₹2 lakh on a self-occupied house.

5. Other deductions

6. Salary exemptions (old regime)

• HRA: now 50% for 8 cities from tax year 2026-27. See our salary article.
• Leave Travel Allowance.
• Standard deduction: ₹50,000 (old) vs ₹75,000 (new).

What still works under the NEW regime

• Standard deduction: ₹75,000
• Employer’s NPS contribution: up to 14% of salary
• Agniveer Corpus Fund contributions
• Family pension deduction: up to ₹25,000
• Home loan interest on a let-out property (against rent only)
• Gratuity and leave encashment exemptions at retirement

Last-minute tax planning: do’s and don’ts

• Don’t buy insurance only to save tax. Pick ELSS or PPF if they fit your goals.
• Do check your EPF contribution first. It may already use up most of the ₹1.5 lakh.
• Do pay health insurance premiums for parents. It is often the best deduction for value.
• Do keep receipts and proof. Claims are checked against your AIS and employer records.
• Don’t wait until March: investments must be made by 31 March 2027 to count for tax year 2026-27.

Frequently asked questions

Are the 80C and 80D limits the same under the new Act?
Yes. Only the section numbers have changed (123 and 126). The limits are the same.

Can I claim 80C in the new regime?
No. Section 123 (80C) is available only under the old regime.

Is it worth switching to the old regime just to claim 80C?
Only if your total deductions are large enough. Run both calculations. See our new vs old regime guide.

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Want a personalised tax-saving plan? Garvita Jain & Co. reviews your deductions, compares both regimes and files your ITR. Contact us here, or at contact@garvitajainandco.com or +91 98678 16597.

This article is general information based on the law as of October 2026 and is not professional advice.

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Sources

Official

• Income Tax e-filing portal, deductions (Chapter VI-A) help pages

Professional / CA publications

• ClearTax, Income Tax Act 2025 section numbers, old vs new (80C → 123, 80D → 126, 80E → 129, 80G → 133, 80TTA → 153, 24 → 22)
• TaxBuddy, Allowances and deductions for salaried employees
• Zoho Payroll Academy, Income tax on salary (TY 2026-27)
• Business Standard, Allowances you can claim under the new tax regime