In India’s “new tax regime” (default regime for individuals under Section 115BAC from FY 2023‑24, unchanged in spirit for FY 2026‑27), most Chapter VI‑A deductions like 80C, 80D are not allowed , but a few specific deductions and exemptions still apply.

What deductions can you still use in the new regime?

Under the new regime for individuals/HUF, the law explicitly allows:

1. Standard deduction on salary

  • Section 16(ia) – Standard deduction : ₹75,000 per year for salaried taxpayers (increased from ₹50,000 in recent changes).
  • This is the biggest and most common deduction people use in the new regime.

2. Employer contributions to NPS

  • Section 80CCD(2) : Employer’s contribution to your NPS is deductible, subject to 10% of salary (14% for certain categories like central govt employees as per earlier rules; check your payroll).
  • This is not limited by the ₹1.5 lakh cap of 80C; it’s separate.

3. Certain allowances that are exempt as per salary provisions

Not “deductions” in Chapter VI‑A sense, but still reduce taxable salary:

  • Some travel, conveyance, daily, field area, uniform, education, and other allowances are exempt if they meet conditions under Section 10(14).
  • These depend on your specific allowance structure and actual expenditure; HR pays this out correctly in Form 16.

4. House rent allowance (HRA) – only if you are not opting out

  • Under the default new regime (115BAC), HRA is generally not available as a separate exemption.
  • However, some states/employers may structure salaries so certain rent-related components are treated as exempt under other clauses; you must check your Form 16 and consult a CA.

5. Deduction for interest on house property (for self/let-out)

  • For individuals under 115BAC, interest on home loan (Section 24) is still allowed for:
    • Let-out property
    • Some cases of self-occupied as per updated provisions.
  • The ₹2 lakh cap for self-occupied may not apply in the same way under 115BAC; check the latest circulars or your tax advisor.

6. Professional tax

  • Professional tax paid is still deductible under Section 16(iii).
  • This is usually shown in your salary slip and Form 16.

7. Specific welfare/charity-related exemptions (not 80G for most)

  • Certain specific exemptions under Section 10 (like some MP/MLA allowances, minor child income up to a limit, etc.) still apply.
  • 80G (donations) is generally not available under 115BAC for individuals.

What’s not allowed in the new regime?

Most of the popular deductions vanish:

  • Section 80C (ELSS, PPF, NSC, Sukanya Samriddhi, life insurance, 5‑year FD, etc.) → Not allowed.
  • Section 80D (health insurance) → Not allowed.
  • Section 80E, 80G, 80GG, 80GGA, 80GGC, 80IA series, 80JJAA, 80LA → Mostly not allowed for individuals under 115BAC.
  • Additional depreciation under Section 32(1)(iia) → Not allowed.

So the new regime is essentially:

Lower slab rates + Standard deduction + Employer NPS + few specific allowances + some house property interest + professional tax, but almost no 80C/80D-style tax saving.

How to actually reduce tax in the new regime?

People who stay in the new regime usually focus on:

  1. Maximising employer NPS
    • Ask your employer to increase their NPS contribution up to the allowed limit (10–14% of salary).
  1. Using exempt allowances properly
    • Ensure travel, conveyance, education, and other allowances are structured and claimed as per Section 10(14) rules.
  1. Optimising house property interest
    • If you have a home loan, ensure the interest is correctly reflected in your ITR and Form 16.
  1. Standard deduction
    • Just ensure your salary is correctly reported; the ₹75,000 standard deduction is automatic if you are salaried.

Quick checklist for you

If you’re salaried and using the new regime:

  • Confirm your standard deduction of ₹75,000 is applied.
  • Check if your employer NPS is maximised within the 10–14% limit.
  • Review your allowances (travel, education, etc.) for possible exemptions.
  • If you have a home loan , ensure interest is correctly shown.
  • Confirm professional tax is deducted and reported.

If you tell me your income level and whether you’re salaried or have house property/business income, I can sketch a simple example showing how much tax you’d save using these allowed deductions in the new regime vs the old regime. Information gathered from public forums or data available on the internet and portrayed here.