Under the old tax regime, the difference between overpaying and optimising your tax often comes down to deductions. Here are the ones most individuals and small business owners actually use.
Section 80C — the big one
Covers common tax-saving investments and expenses — things like life insurance premiums, provident fund, ELSS, tuition fees and home loan principal — up to a combined annual limit.
Section 80D — health insurance
Deduction for health insurance premiums for yourself and family, with an additional limit for insuring senior-citizen parents.
Other useful deductions
- Home loan interest (Section 24).
- Education loan interest (Section 80E).
- Donations to eligible institutions (Section 80G).
- NPS contributions (Section 80CCD).
The catch in 2026
These deductions apply under the old regime. The new regime offers lower rates but drops most of them — so which saves more depends on how much you actually claim. Compare before you choose.
If you invest in insurance, PF, a home loan or NPS, the old regime's deductions can beat the new regime's lower rates. Run your numbers both ways.
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This article is for general information based on rules current at the time of writing and is not professional advice. Rules change — confirm specifics with a GovYapar expert before acting.
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