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As taxpayers begin filing their Income Tax Returns (ITRs) for Assessment Year 2026-27, choosing between the old and new tax regimes remains one of the most important decisions. While the new tax regime offers lower tax rates and has become the default option, it also requires taxpayers to forgo several popular exemptions and deductions available under the old regime.<\/p>
Tax experts say many taxpayers mistakenly assume that deductions such as HRA, Section 80C investments or home loan interest continue to be available under the new regime, leading to incorrect tax calculations. Here’s a look at the major deductions you cannot claim if you opt for the new tax regime.<\/p>
1. House Rent Allowance (HRA)<\/strong><\/p> The exemption available under Section 10(13A) for House Rent Allowance is not available under the new tax regime.<\/p> 2. Leave Travel Concession (LTC)<\/strong><\/p> Tax exemption on Leave Travel Concession under Section 10(5) cannot be claimed.<\/p> MUST READ:\u00a0Before filing your ITR, complete this 10-minute checklist to avoid an Income Tax notice<\/p> 3. Most allowances<\/strong><\/p> Most allowances covered under Section 10(14), except those specifically permitted under the law, are not eligible.<\/p> 4. Entertainment allowance<\/strong><\/p> The deduction available under Section 16(ii) has been withdrawn under the new regime.<\/p> 5. Professional tax deduction<\/strong><\/p> Employees cannot claim a deduction for professional tax paid under Section 16(iii).<\/p> 6. Home loan interest on self-occupied property<\/strong><\/p> The deduction of up to \u20b92 lakh on interest paid for a self-occupied house under Section 24(b) is unavailable.<\/p> 7. Section 80C deductions<\/strong><\/p> Popular tax-saving investments under Section 80C, including Public Provident Fund (PPF), Employees’ Provident Fund (EPF), ELSS mutual funds, National Savings Certificate (NSC), tax-saving fixed deposits, Sukanya Samriddhi Yojana and life insurance premiums, cannot be claimed.<\/p> 8. Section 80D deduction<\/strong><\/p> Premiums paid towards health insurance policies under Section 80D are not deductible.<\/p> 9. SEZ deduction<\/strong><\/p> Businesses cannot claim deductions available under Section 10AA for Special Economic Zone units.<\/p> 10. Additional depreciation<\/strong><\/p> The benefit under Section 32(1)(iia) for investment in new plant and machinery is unavailable.<\/p> 11. Investment in notified backward areas<\/strong><\/p> The deduction under Section 32AD for investment in plant and machinery in notified backward regions is not available.<\/p> 12. Specified business deductions<\/strong><\/p> Deductions under Sections 33AB and 33ABA, available for specified businesses such as tea, coffee, rubber and petroleum exploration, are not permitted.<\/p> 13. Scientific research deductions<\/strong><\/p> Several deductions relating to donations and expenditure on scientific research under Section 35 are unavailable.<\/p> 14. Capital expenditure deductions<\/strong><\/p> Businesses cannot claim deductions under Section 35AD for specified capital expenditure.<\/p> MUST READ:\u00a0Bought Indian shares but earned no income? Why foreign investors are receiving Income Tax reassessment notices<\/strong><\/p> 15. Agriculture Extension Project deduction<\/strong><\/p> The deduction available under Section 35CCC for expenditure on agriculture extension projects is also unavailable.<\/p> What can you still claim?<\/strong><\/p> The new tax regime is not completely devoid of tax benefits. Salaried employees can continue to claim the \u20b975,000 standard deduction, while employer contributions to the National Pension System (NPS) under Section 80CCD(2) remain deductible.<\/p> Taxpayers can also claim deductions for home loan interest on let-out properties, gratuity, leave encashment, employer contributions to the Agniveer Corpus Fund, transport allowance for differently abled employees and certain Voluntary Retirement Scheme (VRS) benefits, subject to applicable conditions.<\/p> DID YOU KNOW:\u00a0ITR Filing 2026: Don’t panic! These 8 AIS transactions are usually not taxable<\/strong><\/p> According to tax experts, the choice between the old and new tax regimes depends on an individual’s income profile and eligible deductions. Taxpayers who claim substantial benefits under HRA, Section 80C, Section 80D or home loan interest may find the old regime more advantageous, while those with limited deductions may benefit from the lower tax rates offered under the new regime. Before filing an ITR, experts recommend comparing tax liability under both regimes to determine the more tax-efficient option.<\/p> <\/div> ITR 2026, New tax regime 2026, Old vs new tax regime, ITR filing 2026, Tax deductions under new tax regime, Section 80C deduction, HRA exemption, Home loan interest deduction, Standard deduction \u20b975000, Income Tax Return AY 2026-27#ITR #Filing #deductions #claim #Tax #Regime1784151005<\/p> ","protected":false},"excerpt":{"rendered":" As taxpayers begin filing their Income Tax Returns (ITRs) for Assessment Year 2026-27, choosing between the old and new tax regimes remains one of the most important decisions. While the new tax regime offers lower tax rates and has become the default option, it also requires taxpayers to forgo several popular exemptions and deductions available […]<\/p>\n","protected":false},"author":1,"featured_media":11712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[8738,7791,1172,46494,10633,46496,7618,46491,27169,38572,6080,2823,46493,46495,1489,46492],"class_list":["post-11711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-claim","tag-deductions","tag-filing","tag-home-loan-interest-deduction","tag-hra-exemption","tag-income-tax-return-ay-2026-27","tag-itr","tag-itr-2026","tag-itr-filing-2026","tag-new-tax-regime-2026","tag-old-vs-new-tax-regime","tag-regime","tag-section-80c-deduction","tag-standard-deduction-75000","tag-tax","tag-tax-deductions-under-new-tax-regime"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/11711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11711"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/11711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/11712"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11711"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Deduction\/Exemption\u00a0\u00a0 <\/strong><\/td> \u00a0Available in New Tax Regime?<\/strong><\/td> <\/tr> House Rent Allowance (HRA)<\/td> \u274c No<\/td> <\/tr> Leave Travel Concession (LTC)<\/td> \u274c No<\/td> <\/tr> Section 80C (PPF, EPF, ELSS, NSC, LIC, Tax-saving FD, SSY, etc.)<\/td> \u274c No<\/td> <\/tr> Section 80D (Health insurance premium)<\/td> \u274c No<\/td> <\/tr> Home loan interest on self-occupied house (Section 24b)<\/td> \u274c No<\/td> <\/tr> Professional tax deduction<\/td> \u274c No<\/td> <\/tr> Entertainment allowance<\/td> \u274c No<\/td> <\/tr> SEZ deduction (Section 10AA)<\/td> \u274c No<\/td> <\/tr> Additional depreciation (Section 32(1)(iia))<\/td> \u274c No<\/td> <\/tr> Investment in notified backward areas (Section 32AD)<\/td> \u274c No<\/td> <\/tr> Scientific research deductions (Section 35)<\/td> \u274c No<\/td> <\/tr> Capital expenditure deduction (Section 35AD)<\/td> \u274c No<\/td> <\/tr> Agriculture Extension Project (Section 35CCC)<\/td> \u274c No<\/td> <\/tr> Standard deduction for salaried employees (\u20b975,000)<\/td> \u2705 Yes<\/td> <\/tr> Employer’s NPS contribution [Section 80CCD(2)]<\/td> \u2705 Yes<\/td> <\/tr> Home loan interest on let-out property<\/td> \u2705 Yes<\/td> <\/tr> Gratuity<\/td> \u2705 Yes<\/td> <\/tr> Leave encashment<\/td> \u2705 Yes<\/td> <\/tr> Agniveer Corpus Fund contribution (Section 80CCH)<\/td> \u2705 Yes<\/td> <\/tr> Transport allowance for differently abled employees<\/td> \u2705 Yes<\/td> <\/tr> Voluntary Retirement Scheme (VRS) exemption<\/td> \u2705 Yes<\/td> <\/tr> Gifts up to \u20b950,000 (subject to conditions)<\/td> \u2705 Yes<\/td> <\/tr> Meal vouchers (up to prescribed limits)<\/td> \u2705 Yes<\/td> <\/tr> <\/tbody> <\/table>