What is the 80C limit for AY 2026-27?

The Section 80C deduction limit is Rs 1.5 lakh, covering EPF, PPF, ELSS, life-insurance premium, home-loan principal, children's tuition fees, NSC and 5-year tax-saving FDs. It is available only under the old regime.

Can I claim 80C and 80D in the new regime?

No. Most deductions including 80C and 80D are not available under the new regime. To claim them you must opt for the old regime and check if it saves you more.

How much can I claim under 80D?

Health-insurance premium under Section 80D is deductible up to Rs 25,000 for yourself and family, plus up to Rs 50,000 for senior-citizen parents, so up to Rs 75,000 or Rs 1 lakh in some cases.

Is the NPS 80CCD(1B) deduction separate from 80C?

Yes. The Rs 50,000 additional NPS deduction under Section 80CCD(1B) is over and above the Rs 1.5 lakh 80C limit.

How much home-loan interest can I deduct?

For a self-occupied house, interest under Section 24(b) is deductible up to Rs 2 lakh a year. The principal repayment counts within the Rs 1.5 lakh 80C limit.

Is employer's NPS contribution deductible in the new regime?

Yes. The employer's contribution to NPS under Section 80CCD(2) is one of the few deductions allowed even under the new regime.

Blog · Tax planning · Updated 12 Jul 2026 · 9 min read

80C, 80D & Top Old-Regime Deductions AY 2026-27

These are what make the old regime worth it. If your deductions add up, the old regime can beat the new one — here's every major one and how much you can save.

Old regime only: almost all the deductions below are unavailable under the new regime. Claim them by opting for the old regime — and compare, because the new regime's ₹12 lakh rebate often wins anyway.

The big ones

Section	What it covers	Limit
80C	EPF, PPF, ELSS, life insurance, home-loan principal, tuition fees, 5-yr FD, NSC	₹1,50,000
80CCD(1B)	Extra NPS contribution (over & above 80C)	₹50,000
80CCD(2)	Employer's NPS contribution (also allowed in new regime)	up to 14% of salary
80D	Health insurance (self/family + senior parents)	₹25,000 + ₹50,000
24(b)	Home-loan interest (self-occupied)	₹2,00,000
80TTA / 80TTB	Savings interest / senior-citizen interest	₹10,000 / ₹50,000
80E	Education-loan interest	no cap (8 years)
80G	Eligible donations	50–100% (varies)

Section 80C — the ₹1.5 lakh workhorse

80C is a single ₹1.5 lakh basket covering many common items: your EPF contribution, PPF, ELSS (equity tax-saver funds), life-insurance premiums, the principal part of your home-loan EMI, children's tuition fees, 5-year tax-saving FDs and NSC. You don't need all of them — just enough to reach ₹1.5 lakh.

Section 80D — health insurance

Premiums for health insurance are deductible: up to ₹25,000 for yourself, spouse and children, plus up to ₹50,000 for senior-citizen parents. A preventive health check-up up to ₹5,000 is included within these limits.

NPS — two separate benefits

80CCD(1B): an extra ₹50,000 for your own NPS contribution, over and above the ₹1.5 lakh 80C limit.
80CCD(2): your employer's NPS contribution (up to 14% of salary) — one of the few deductions allowed even in the new regime.

How to stack them (worked example)

A common salaried old-regime stack:

₹50,000 standard deduction
₹1,50,000 under 80C
₹50,000 under 80CCD(1B) — NPS
₹25,000 under 80D
₹2,00,000 home-loan interest (24b)
Plus HRA

That's ₹4.75 lakh before HRA — enough that, at higher incomes, the old regime can beat the new one. But you have to genuinely have (and prove) these to claim them.

But always compare

The new regime's lower slabs and ₹12 lakh rebate mean it wins for many people even after these deductions — especially if you don't have a home loan or big HRA. The only way to be sure is to compute both: see new vs old regime.

Common mistakes

Claiming these under the new regime (not allowed).
Double-counting home-loan principal (80C) and interest (24b) — they're separate.
Missing 80CCD(1B) — it's extra to 80C.
No proof kept for the deductions claimed.

Maximise your deductions — and compare regimes

Your CA claims every deduction you're entitled to and files under whichever regime saves more.

File with a CA →

General information for AY 2026-27, not individual tax advice. Limits and eligibility have conditions; verify for your case. Reviewed by a Chartered Accountant.