IT Act 1961 → 2025 / Salaried employees / New regime:
New regime: what you can still claim
Section 202(2) lists what is denied. Everything not on that list stays available.
Tax year 2026-27 · Income-tax Act, 2025 as amended by Finance Act 2026 · reviewed 5 November 2026
Allowed in the new regime
| Item | New section | Old section | Amount |
|---|---|---|---|
| Standard deduction | 19(1) Sl. No. 2 | 16(ia) | ₹75,000 |
| Employer contribution to NPS | 124(1), 124(2) | 80CCD(2) | Up to 14% of salary |
| Agniveer Corpus Fund contribution | 125(2) | 80CCH | As per scheme |
| Gratuity, leave encashment, VRS, commuted pension, retrenchment compensation | 19(1) Sl. Nos. 3–14 | 10(10), 10(10A), 10(10AA), 10(10B), 10(10C) | Within the exemption limits |
| Family pension | 93(1)(d)(i) | 57(iia) | One-third or ₹25,000, whichever is less |
| Meal vouchers, gifts | Rules 2026 | 17(2), Rule 3(7) | ₹200 per meal; ₹15,000 a year |
| Interest on let-out house property | 22(1)(b) | 24(b) | Allowed against rent, but no set-off of the loss against salary |
| Rebate | 156(2) | 87A | Up to ₹60,000 if income ≤ ₹12 lakh |
Denied in the new regime — section 202(2)
- Schedule III Sl. Nos. 5–8, 11 and 17: allowances to legislators, LTA, HRA, minor's income relief.
- Schedule III Sl. Nos. 12–13: special allowances, except those prescribed for the new regime.
- Professional tax (19(1) Sl. No. 1).
- Interest on self-occupied property (22(1)(b) for 21(6) properties).
- All Chapter VIII deductions except 124(1), 124(2), 125(2) and 146 — so no 80C, 80D, own NPS, 80E, 80G, 80GG or savings interest deduction.
- Set-off of house property loss against other income, and carried-forward losses linked to denied deductions.
Frequently asked
Is employer NPS contribution allowed in the new regime?
Yes, up to 14% of salary under section 124(2) of the Income-tax Act, 2025.
Is home loan interest allowed in the new regime?
Not for a self-occupied house. For a let-out house, interest is deductible from the rent, but any loss cannot be set off against salary.
Old vs new section pages
115BAC→202New tax regime (default) for individuals, HUFs, AOPs, BOIs and artificial juridical persons80CCD→124Deduction for NPS contributions: employer (80CCD(2)) and additional ₹50,000 (80CCD(1B))57→93Deductions from income from other sources (family pension, interest, dividends)16→19Deductions from salary: standard deduction, professional tax (and gratuity exemption)