Income tax · Individuals and salaried
What are the limits for sections 80C, 80D and 80CCD(1B), and which deductions survive in the new regime?
Short answer
In the old regime, section 80C (now 123) allows up to ₹1.5 lakh for PPF, ELSS, life insurance, home-loan principal and similar; 80CCD(1B) an extra ₹50,000 for your own NPS contribution; and 80D (now 126) up to ₹25,000 for health insurance, or ₹50,000 for senior citizens, plus the same again for parents. The new regime allows almost none of these. It keeps the standard deduction, the employer's NPS contribution (80CCD(2), now 124) and a few others.
Old regime limits
| Deduction | What qualifies | Limit |
|---|---|---|
| 80C (now 123) | PPF, EPF (employee share), ELSS, life insurance premium, home-loan principal, children's tuition fees, 5-year bank FD, NSC, Sukanya Samriddhi | ₹1,50,000 |
| 80CCC and 80CCD(1) | Pension plans and your own NPS contribution | Within the same ₹1,50,000 |
| 80CCD(1B) | Your own NPS contribution, over and above ₹1,50,000 | ₹50,000 |
| 80D (now 126) | Health insurance for self, spouse and children; preventive check-up up to ₹5,000 within the limit | ₹25,000 (₹50,000 if you are a senior citizen) |
| 80D for parents | Health insurance for parents | A further ₹25,000 (₹50,000 if a parent is a senior citizen) |
| 80E, 80G, 80TTA/80TTB and others | Education-loan interest, donations, savings or deposit interest | As per each section |
So a family can claim up to ₹1,00,000 under 80D where both you and your parents are senior citizens. Premiums must be paid other than in cash (cash is allowed only for the preventive check-up).
What the new regime still allows
- Standard deduction of ₹75,000 for salary and pension, and the family-pension deduction.
- Employer's NPS contribution (80CCD(2), now 124), up to 14% of salary.
- Agniveer Corpus Fund contributions (80CCH).
- Exemptions such as gratuity, leave encashment and retrenchment compensation within their limits.
It does not allow 80C, 80CCD(1B), 80D, HRA, home-loan interest on a self-occupied house, or most other deductions.
Which to choose
Add up what you will actually invest and pay. If your deductions are small, the new regime is usually better because of its lower rates and the ₹12 lakh rebate. Large 80C, 80D and HRA claims together with a home loan can tip the balance to the old regime. Compare both with the income tax calculator and read old or new regime.
Legal basis
- Sections 80C, 80CCC, 80CCD and 80D, Income-tax Act, 1961; now sections 123, 124 and 126, Income-tax Act, 2025
- Section 115BAC, Income-tax Act, 1961, now section 202, Income-tax Act, 2025 (new regime)
Official sources
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