Income Tax Deductions Guide: 80C, 80D, HRA, 24B & More

By the MyTaxLocker Team · Updated 25 June 2026

Deductions lower your taxable income — but under the current rules most of them come with one big condition: they only count if you're on the Old regime. This guide lays out the main deductions and their caps for Assessment Year 2026-27 (FY 2025-26), and links to the detail on each.

The main deductions at a glance

Caps above are illustrative summaries. *Home-loan interest on a let-out property has different treatment. Confirm the current limits for your year on the official portal.

The Old-vs-New catch

Here's the heart of it: the New regime gives you lower slab rates and a larger ₹75,000 standard deduction, but takes away almost every other deduction — no 80C, no 80D, no HRA, no home-loan interest. The Old regime keeps all of those but charges higher rates. So the question isn't "which deductions can I claim" in isolation — it's "do my deductions save more than the New regime's lower rates". Work through it in Old vs New tax regime: how to decide, and run both side by side in the Old vs New regime calculator or the income tax calculator.

Section 80C and 80D

Section 80C is the workhorse — up to ₹1,50,000 across EPF, PPF, ELSS, life insurance, home-loan principal, tax-saving FDs and tuition fees. Section 80D adds health-insurance premiums on top. Full detail, with what counts and what doesn't, is in 80C & 80D deductions. See how much 80C room you have left with the 80C calculator.

HRA exemption

If you receive House Rent Allowance and pay rent, part of your HRA is exempt under the Old regime — the least of three formula amounts (actual HRA, rent paid minus 10% of salary, and a 50%/40% of salary cap). Read HRA exemption explained and compute yours with the HRA calculator.

Home-loan interest (Section 24b)

Interest on a home loan for a self-occupied property is deductible up to ₹2,00,000 a year under Section 24(b), again on the Old regime. The treatment differs for a let-out property. Details in Section 24(b) home-loan interest.

NPS — 80CCD

The National Pension System carries its own deductions: your contribution within the 80C ceiling, an extra ₹50,000 under 80CCD(1B), and the employer's contribution under 80CCD(2) — the last of which is allowed even under the New regime. The full breakdown is in NPS tax benefits (80CCD).

The standard deduction

Unlike the rest, the standard deduction needs no investment or paperwork — it's a flat amount removed from salary automatically (₹75,000 New, ₹50,000 Old). It applies under both regimes. More on it, plus other salary exemptions, in standard deduction & salary exemptions.

How MyTaxLocker handles deductions

MyTaxLocker reads the deductions already in your Form 16, lets you add the ones payroll missed, and computes your tax under both regimes so you can see which is lower for your mix of deductions — then prepares a ready-to-upload ITR JSON you upload to the official portal yourself.

Frequently asked questions

Can I claim 80C and 80D under the New regime?

No. Most Chapter VI-A deductions — including 80C, 80D, 80CCD(1B) and HRA — are available only under the Old regime. The New regime offers lower slab rates and a higher ₹75,000 standard deduction instead, but does not allow these deductions. The employer's NPS contribution under 80CCD(2) is a notable exception that is allowed under both regimes.

What is the maximum deduction under Section 80C?

The combined ceiling under Sections 80C, 80CCC and 80CCD(1) is ₹1,50,000 per year. Eligible investments and payments include EPF, PPF, ELSS, life insurance premiums, the principal on a home loan, five-year tax-saving fixed deposits and children's tuition fees. The extra NPS deduction under 80CCD(1B) of up to ₹50,000 is over and above this limit.

Is the standard deduction the same as Section 80C?

No. The standard deduction is a flat amount taken off salary income automatically — ₹75,000 under the New regime and ₹50,000 under the Old regime — with no investment or proof needed. Section 80C is a separate, Old-regime-only deduction of up to ₹1,50,000 for specified investments and payments.