Question
Which deductions are still allowed under the new tax regime in FY 2026-27?
Answer
Bottom line: The new regime allows only a short list of deductions — most popular ones like 80C, 80D and HRA are not available.
1. Allowed
Standard deduction of ₹75,000 on salary or pension; the employer's NPS contribution under Section 80CCD(2) up to 14% of salary; the ₹25,000 family-pension deduction; and the Agniveer Corpus deduction under 80CCH.
2. Not allowed
80C (LIC, PPF, ELSS), 80D mediclaim, HRA, LTA, home-loan interest on a self-occupied house, 80TTA/80TTB and most other Chapter VI-A deductions.
3. Your choice
If your deductions are large, compare both regimes before deciding.
Compare regimes with our Income Tax Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.