Previous vs New Regime Full Checklist FY 2026-27

Full record of all tax deductions in outdated and new regime for FY 2026-27 — 80C, 80D, HRA, NPS, house mortgage, all sections defined primarily based on Price range 2026 adjustments.

In my earlier article — New Tax Regime vs Previous Regime: Who Wins in 2026? — I confirmed you break-even tables, 5 case research with precise numbers, and a transparent income-level verdict on which regime saves extra tax.

However many readers got here again with one particular follow-up. “I need the complete record of each deduction — part by part — so I can calculate my very own quantity.”

That’s precisely what this text is. A whole reference information to each deduction and exemption accessible for FY 2026-27 (AY 2027-28), up to date for Price range 2026, the Earnings Tax Act 2025, and the Draft Earnings Tax Guidelines 2026.

One necessary clarification earlier than we start. There are two separate issues at play this 12 months:

The Earnings Tax Act 2025 has obtained Presidential assent and comes into drive from 1st April 2026. That is confirmed regulation. It replaces the Earnings Tax Act 1961. Part numbers change. Deduction ideas and limits stay the identical.

The Draft Earnings Tax Guidelines 2026 have been launched by CBDT on seventh February 2026 and canopy the allowance limits, perquisite valuations, and procedural guidelines beneath the brand new Act. These have been by means of public session and are anticipated to be formally notified earlier than 1st April 2026 — the Price range has been handed by each Homes of Parliament, Presidential assent is imminent, and gazette notification of the Guidelines is the ultimate remaining step. All main tax publications are treating these as efficient from FY 2026-27.

I’ve included all these adjustments on this article. Wherever the change comes particularly from the Draft Guidelines (somewhat than the Act or Finance Invoice itself), I’ve added a quick observe: “topic to official gazette notification of the Guidelines.” That one line protects you. As soon as the Guidelines are formally notified — which is predicted any day now — that caveat turns into irrelevant.

All Tax Deductions: Previous vs New Regime Full Checklist FY 2026-27

Half 1 — What Modified: Price range 2026 and Guidelines 2026

1. Earnings Tax Act 2025 Replaces the 1961 Act

From 1st April 2026, the Earnings Tax Act 2025 is the operative regulation. The acquainted part numbers — 80C, 80D, 80E, 80CCD — not exist. Your Kind 16 (now Kind 130), ITR, and all official communications will use new part numbers. The deductions and their limits are an identical — solely the numbering has modified.

Key renumbering related to deductions:

I’ll reference each outdated and new part numbers all through so you aren’t confused when your CA or employer makes use of an unfamiliar quantity.

2. “Tax Yr” Replaces “Monetary Yr” and “Evaluation Yr”

Underneath the brand new Act, “Monetary Yr” is now referred to as “Tax Yr.” The idea of a separate “Evaluation Yr” not exists — revenue is taxed within the Tax Yr itself. So FY 2026-27 = Tax Yr 2026-27. I’ll proceed utilizing FY and AY on this article since most readers know these phrases.

3. Part 80TTB Raised to Rs.1 Lakh for Senior Residents

Probably the most vital deduction change from Price range 2026. The curiosity revenue deduction for senior residents has been raised from Rs.50,000 to Rs.1 lakh per 12 months. Covers curiosity from financial savings accounts, FDs, recurring deposits, and put up workplace deposits. Out there beneath outdated regime solely.

Sensible influence: A senior citizen with Rs.15 lakh in FDs at 7.5% earns Rs.1.12 lakh in annual curiosity. Underneath the outdated restrict, Rs.62,000 was taxable. Underneath the brand new Rs.1 lakh restrict, solely Rs.12,000 is taxable. A significant real-world saving.

4. TDS Threshold on Curiosity Doubled for Senior Residents

Banks won’t deduct TDS on curiosity till it crosses Rs.1 lakh per 12 months per financial institution for senior residents. Was Rs.50,000 earlier. Higher money movement for retirees with a number of FDs.

5. Kind 15H Centralised

Senior residents can now submit a single Kind 15H by means of the NSDL or CDSL portal and it robotically applies to all linked banks. No extra separate submission at every financial institution.

6. No Change in Slabs, Customary Deduction, or 87A Rebate

The entire following proceed unchanged:

• New regime slabs and Rs.4 lakh primary exemption
• Rs.75,000 customary deduction beneath new regime
• Rs.50,000 customary deduction beneath outdated regime
• Rs.60,000 Part 87A rebate — zero tax as much as Rs.12 lakh taxable revenue
• All 80C, 80D, NPS, HRA, house mortgage deduction limits

Modifications from Draft Guidelines 2026 (Topic to official gazette notification — anticipated earlier than 1st April 2026)

Kids’s Schooling Allowance — 30x enhance From Rs.100/month/little one to Rs.3,000/month/little one (as much as 2 kids). Annual profit: Rs.72,000 for 2 kids. Unchanged since 1997. Previous regime solely.

Hostel Expenditure Allowance — 30x enhance From Rs.300/month/little one to Rs.9,000/month/little one (as much as 2 kids). Annual profit: Rs.2,16,000 for 2 kids in hostel. Previous regime solely.

Mixed training + hostel for 2 kids in hostel: Rs.2,88,000/12 months — in opposition to simply Rs.9,600 at present.

HRA — 50% Metropolis Checklist Expanded from 4 to eight Cities At present Mumbai, Delhi, Chennai, Kolkata qualify for 50% HRA exemption. From FY 2026-27: Bengaluru, Hyderabad, Pune, and Ahmedabad added. Staff in these 4 cities transfer from the 40% bracket to the 50% bracket for HRA calculation.

Affect: An individual in Bengaluru with Primary Rs.80,000/month will get extra Rs.8,000/month (10% of Primary) in HRA exemption — Rs.96,000/12 months additional. Previous regime solely.

Meal Vouchers — 4x enhance From Rs.50/meal to Rs.200/meal. Applies to subsidised meals by means of workplace canteen or meals vouchers (Sodexo, Pluxee, Zaggle and so on.). Out there beneath each outdated and new regimes — one of many few Draft Guidelines adjustments that advantages new regime taxpayers too.

For an worker utilizing meal vouchers on all working days: roughly Rs.50,000–Rs.60,000/12 months in extra exemption.

Employer Presents — 3x enhance From Rs.5,000/12 months to Rs.15,000/12 months. Presents, vouchers, and tokens from employer as much as this restrict aren’t taxable. Out there in each regimes.

Employer Medical Mortgage — 10x enhance Curiosity-free loans from employer for therapy of specified illnesses — from Rs.20,000 to Rs.2 lakh. Not taxable as perquisite as much as this restrict. Out there in each regimes.

Employer Schooling Facility for Kids — elevated Schooling offered by employer (whether or not in employer-owned establishment or every other establishment) to worker’s kids — from Rs.1,000/month/little one to Rs.3,000/month/little one. This can be a perquisite rule — completely different from the Part 10(14) kids’s training allowance above.

Transport Allowance for Disabled Staff — main hike From Rs.3,200/month flat to:

• Metro cities: Rs.15,000/month + DA
• Different cities: Rs.8,000/month + DA Out there in each regimes.

Automotive Perquisite Valuation — goes up (tax unfavorable) That is the one change that will increase tax legal responsibility. Month-to-month taxable perquisite values for employer-provided automobiles used partly for private functions have been revised upward — almost 3x in some instances. Impacts each regimes because it impacts taxable wage. In case your employer offers a automotive for private use, your taxable wage might be greater from FY 2026-27.

Half 2 — What You CAN Declare within the New Regime

The brand new regime isn’t a zero-deduction regime. Right here is the entire confirmed record.

Customary Deduction — Rs.75,000 All salaried staff and pensioners. No documentation required. Rs.25,000 greater than outdated regime — one of many few areas the place new regime is definitively higher.

Employer NPS Contribution — Part 80CCD(2) [New Act: Section 124] Employer’s contribution to NPS Tier-1 — not included in taxable wage in each regimes:

• Non-public sector: As much as 14% of Primary + DA
• Authorities staff: As much as 14% of Primary + DA

No higher rupee ceiling. Most underused deduction within the new regime. Ask your HR to restructure CTC so a portion of employer contribution goes to NPS. Your employer’s price doesn’t change. Your taxable revenue reduces.

For a personal sector worker with Primary Rs.10 lakh, employer can route Rs.1 lakh to NPS. At 20% tax slab that saves Rs.20,800 per 12 months — with out you investing a single additional rupee.

Residence Mortgage Curiosity on Let-Out Property — Part 24(b) Full curiosity paid — no ceiling. Each regimes. The Rs.2 lakh cap applies solely to self-occupied property and solely within the outdated regime.

Household Pension Deduction Decrease of Rs.25,000 or one-third of household pension obtained.

Part 80CCH — Agniveer Corpus Fund Each personal contribution and authorities’s matching contribution to Seva Nidhi — absolutely deductible. Each regimes.

Gratuity — Part 10(10)

• Authorities staff: Absolutely exempt
• Non-public sector (Gratuity Act coated): As much as Rs.20 lakh
• Non-public sector (not coated): Decrease of half month’s wage per 12 months of service or Rs.20 lakh

Depart Encashment at Retirement — Part 10(10AA)

• Authorities staff: Absolutely exempt
• Non-public sector: As much as Rs.25 lakh

VRS Compensation — Part 10(10C) Exempt as much as Rs.5 lakh.

Life Insurance coverage Maturity — Part 10(10D) Tax-free in each regimes topic to situations. Insurance policies issued after 1st April 2023 with annual premium above Rs.5 lakh — maturity proceeds taxable at slab charges.

Employer Contribution Cap — Rs.7.5 Lakh Mixed employer contribution to EPF + NPS + Superannuation tax-free as much as Rs.7.5 lakh per 12 months. Extra taxable. Each regimes.

Meal Vouchers — Rs.200/meal (Topic to official gazette notification of Guidelines) Out there in each outdated and new regimes — one of many few draft rule adjustments that advantages new regime taxpayers.

Employer Presents — Rs.15,000/12 months (Topic to official gazette notification of Guidelines) Each regimes.

Employer Medical Mortgage — As much as Rs.2 Lakh (Topic to official gazette notification of Guidelines) Curiosity-free employer loans for specified illness therapy not taxable. Each regimes.

Transport Allowance — Disabled Staff (Topic to official gazette notification of Guidelines) Rs.15,000/month + DA (metro) / Rs.8,000/month + DA (others). Each regimes.

What Is NOT Out there within the New Regime

No exceptions:

80C (Part 123), 80CCD(1B) personal NPS (Part 124), 80D (Part 126), 80DD (Part 127), 80DDB (Part 128), 80E (Part 129), 80EEA (Part 130), 80EEB (Part 131), 80G (Part 133), 80GG (Part 134), 80TTA, 80TTB, 80U, HRA — Part 10(13A), LTA — Part 10(5), Part 24(b) for self-occupied house mortgage, skilled tax, kids’s training allowance, hostel allowance.

Half 3 — Full Previous Regime Deduction Checklist

Wage-Associated Exemptions

Customary Deduction — Rs.50,000 All salaried staff and pensioners.

HRA — Home Hire Allowance — Part 10(13A) Exempt quantity is the lowest of:

• Precise HRA obtained from employer
• Hire paid minus 10% of Primary wage
• 50% of Primary wage — for Mumbai, Delhi, Chennai, Kolkata, and from FY 2026-27: Bengaluru, Hyderabad, Pune, Ahmedabad (topic to gazette notification of Guidelines)
• 40% of Primary wage — all remaining cities

Sensible instance: Primary Rs.60,000/month, HRA Rs.25,000/month, Hire Rs.22,000/month in Bengaluru:

• Precise HRA = Rs.25,000
• Hire minus 10% of Primary = Rs.16,000
• 50% of Primary (new) = Rs.30,000 (vs 40% = Rs.24,000 earlier) Lowest = Rs.16,000/month = Rs.1,92,000/12 months on this instance. However for greater hire ranges, the 50% metropolis improve materially will increase the exempt quantity.

If you don’t obtain HRA from employer — see Part 80GG.

LTA — Depart Journey Allowance — Part 10(5) Precise transport prices (air/prepare/bus) inside India. Two journeys in a 4-year block. Present block: 2022–2025. Resorts, meals, sightseeing not coated. Air journey — capped at financial system class fare for shortest route.

Kids’s Schooling Allowance — Part 10(14) From FY 2026-27: Rs.3,000/month/little one, as much as 2 kids (Rs.72,000/12 months for 2 kids). (Topic to official gazette notification of Guidelines. Present operative restrict: Rs.100/month/little one.) Previous regime solely.

Hostel Expenditure Allowance — Part 10(14) From FY 2026-27: Rs.9,000/month/little one, as much as 2 kids (Rs.2,16,000/12 months for 2 kids). (Topic to official gazette notification of Guidelines. Present operative restrict: Rs.300/month/little one.) Previous regime solely.

Meal Vouchers From FY 2026-27: Rs.200/meal not taxable. (Topic to official gazette notification of Guidelines. Present restrict: Rs.50/meal.) Out there in each regimes.

Skilled Tax — Part 16(iii) Precise skilled tax deducted from wage. Sometimes Rs.2,400–Rs.2,500/12 months in Karnataka and Maharashtra.

Residence Mortgage — Part 24(b)

Self-Occupied Property As much as Rs.2 lakh/12 months on curiosity paid.

• Mortgage should be for buy or development — not restore (Rs.30,000 restrict)
• Building should full inside 5 years of mortgage — else restrict drops to Rs.30,000
• Joint homeowners with joint mortgage: every co-owner claims Rs.2 lakh independently — Rs.4 lakh for a pair
• Pre-construction curiosity: 5 equal instalments from 12 months development completes

Let-Out Property Full curiosity — no ceiling. Each regimes. Loss set off in opposition to different heads capped at Rs.2 lakh/12 months; steadiness carried ahead 8 years.

Chapter VI-A Deductions

Part 80C [New Act: Section 123] — Rs.1.5 Lakh Mixed Ceiling

The entire following mixed — most Rs.1.5 lakh per 12 months:

• EPF — Personal contribution solely. Employer’s 12% individually exempt.
• PPF — 7.1% curiosity, tax-free. 15-year lock-in. No market threat.
• ELSS — 3-year lock-in. Market-linked returns. LTCG above Rs.1.25 lakh at 12.5%.
• Life Insurance coverage Premium — Pure time period or conventional with sum assured no less than 10x premium. Insurance policies after 1st April 2023 with premium above Rs.5 lakh — maturity taxable.
• Residence Mortgage Principal Reimbursement — Principal portion of EMI. Stamp obligation and registration in buy 12 months additionally qualify.
• Sukanya Samriddhi Yojana (SSY) — Lady little one as much as age 10. At present 8.2%, tax-free together with maturity. Greatest beneath 80C.
• NSC — 5-year lock-in. At present 7.7%. Curiosity accrued annually (besides final) deemed reinvested — additionally qualifies as separate 80C deduction.
• 5-Yr Tax-Saving FD — Scheduled financial institution or put up workplace. 5-year lock-in. Curiosity is taxable.
• SCSS — For 60+. At present 8.2%. Most Rs.30 lakh.
• Tuition Charges — Full-time training in Indian faculty/school/college for as much as 2 kids. Solely tuition charges — not improvement charges, transport, or donations.
• NPS personal contribution beneath Part 80CCD(1) — Inside Rs.1.5 lakh ceiling.

Part 80CCD(1B) [New Act: Section 124] — Further NPS Rs.50,000 Over and above Rs.1.5 lakh ceiling. Personal NPS Tier-1 contribution solely. Previous regime solely. Mixed with 80C = Rs.2 lakh most on these fronts.

Part 80CCD(2) [New Act: Section 124] — Employer NPS Contribution Each regimes. Non-public sector: 10% of Primary + DA. Authorities: 14% of Primary + DA. No higher rupee ceiling.

Part 80D [New Act: Section 126] — Well being Insurance coverage Premium

Preventive well being check-up included inside limits — as much as Rs.5,000/12 months. Might be paid in money. All different premiums should be non-cash.

Part 80DD [New Act: Section 127] — Disabled Dependent Partner, little one, mum or dad, or sibling with incapacity:

• Incapacity 40%+: Rs.75,000 flat — not expense-linked
• Extreme incapacity 80%+: Rs.1,25,000 flat Kind 10-IA from licensed medical authority required.

Part 80DDB [New Act: Section 128] — Specified Illness Remedy Precise therapy bills for self or dependent:

• Beneath 60: As much as Rs.40,000
• Senior residents: As much as Rs.1 lakh

Qualifying illnesses: neurological situations (dementia, Parkinson’s, motor neuron illness, ataxia, chorea, aphasia), malignant cancers, full-blown AIDS, persistent renal failure, haemophilia, thalassemia. Certificates from specialist at authorities hospital required.

Part 80E [New Act: Section 129] — Schooling Mortgage Curiosity

• No higher restrict on deduction
• 8 consecutive years from 12 months reimbursement begins — or till absolutely repaid
• Mortgage from financial institution, monetary establishment, or accepted charitable establishment solely — not household
• Larger training (any course after Class 12) — self, partner, kids, or authorized ward. India or overseas.

Most underappreciated deduction in the complete tax code. For Rs.25 lakh mortgage at 10%, annual curiosity of Rs.2–2.5 lakh is absolutely deductible. No ceiling in any respect.

Part 80EEA [New Act: Section 130] — Reasonably priced Housing Residence Mortgage Further Rs.1.5 lakh on curiosity over Part 24(b), if:

• Mortgage sanctioned: 1st April 2019 to thirty first March 2022
• Stamp obligation worth: Not above Rs.45 lakh
• No different residential property on date of sanction Window closed for brand new loans. Present eligible debtors proceed claiming till 8-year restrict.

Part 80EEB [New Act: Section 131] — EV Mortgage Curiosity As much as Rs.1.5 lakh. Loans sanctioned 1st April 2019 to thirty first March 2023. Closed for brand new loans.

Part 80G [New Act: Section 133] — Donations

• 100% with out restrict: Nationwide Defence Fund, PM Nationwide Reduction Fund, Nationwide Kids’s Fund, Clear Ganga Fund, Swachh Bharat Kosh
• 50% with out restrict: PM Drought Reduction Fund, Jawaharlal Nehru Memorial Fund
• 100% with 10% of adjusted gross revenue ceiling: Permitted analysis associations, accepted universities
• 50% with 10% ceiling: All different accepted charitable establishments Donations above Rs.2,000 should be non-cash.

Part 80GG [New Act: Section 134] — Hire With out HRA When you pay hire however no HRA from employer, or self-employed. Lowest of:

• Rs.5,000/month (Rs.60,000/12 months)
• 25% of complete revenue
• Hire paid minus 10% of complete revenue

Situation: You, your partner, or minor little one mustn’t personal a home at place of employment.

Part 80TTA — Financial savings Account Curiosity Non-senior residents solely. As much as Rs.10,000/12 months on financial savings account curiosity. Banks, cooperative banks, put up workplace. FD curiosity doesn’t qualify.

Part 80TTB — Senior Citizen Curiosity Earnings — RAISED IN BUDGET 2026 For 60+. Raised from Rs.50,000 to Rs.1 lakh per 12 months — Price range 2026 confirmed change. Covers financial savings accounts, FDs, recurring deposits, put up workplace deposits. Replaces 80TTA for senior residents.

Part 80U — Self with Incapacity

• Incapacity 40%+: Rs.75,000
• Extreme incapacity 80%+: Rs.1,25,000 Certificates from medical authority required.

Full Abstract Desk

Rows marked * are from Draft Earnings Tax Guidelines 2026. The Earnings Tax Act 2025 has obtained Presidential assent. The Guidelines are anticipated to be formally notified earlier than 1st April 2026, topic to gazette notification.

The way to Use This Article –

Step 1: Undergo the outdated regime column and mark each deduction that genuinely applies to your scenario.

Step 2: Use your precise numbers — not the utmost limits. Your HRA exemption is formula-based. Your 80D depends upon precise premium. Your 80C depends upon what you really make investments.

Step 3: Subtract Rs.50,000 (outdated regime customary deduction). This provides your internet deduction past customary.

Step 4: Go to the break-even desk in New Tax Regime vs Previous Regime: Who Wins in 2026? and verify whether or not your complete crosses the brink on your revenue stage.

Step 5: If it crosses, calculate actual tax beneath each regimes. If not, new regime wins — go along with it.

That 30-minute train might prevent Rs.20,000 to Rs.1 lakh this 12 months.

Be aware: All deductions replicate provisions of the Earnings Tax Act 2025 and Finance Invoice 2026, relevant from FY 2026-27 (AY 2027-28). The Earnings Tax Act 2025 has obtained Presidential assent and is in drive from 1st April 2026. Objects marked * are from the Draft Earnings Tax Guidelines 2026 launched by CBDT on seventh February 2026 — Finance Invoice 2026 has been handed by each Homes of Parliament and these guidelines are anticipated to be formally notified earlier than 1st April 2026 by way of gazette notification. Previous part numbers from the 1961 Act are included alongside new Act numbers for reference. The 80TTB enhance to Rs.1 lakh is a confirmed Price range 2026 change. Please seek the advice of a professional tax skilled for recommendation particular to your scenario.