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Old vs New — Full Survival List

What Survives in the New Regime? Every Deduction & Exemption Compared

New regime keeps only 80CCD(2) 14% NPS + 80CCH Agniveer + ₹75k std ded + ₹25k family pension — but gratuity, leave, PPF interest and 54 exemptions live in both. Full 25-item table below.

Deductions & exemptions: new vs old

ItemNew regimeOld regime
Standard deduction (salary/pension)₹75,000₹50,000
Employer NPS — 80CCD(2)/Sec 12514% of Basic+DA10% (14% govt)
Agniveer Corpus — 80CCHYesYes
Family pension deduction⅓ or ₹25,000⅓ or ₹15,000
80C / 80D / 80E / 80G / 80TTA / 80TTBNoYes
HRA, LTA, 80GG, kids edu/hostel, food couponsNoYes
Divyang transport ₹3,200/mo; tour/duty allowancesYesYes
Home-loan interest — self-occupied (₹2L)NoYes
Gratuity / leave / VRS / commutation (Sec 10)YesYes
PPF / EPF / SSY interest + maturityExemptExempt
₹1.25L equity LTCG shield; 54/54EC/54FYesYes
Professional tax; entertainment allowanceNoYes
The myth to kill: "new regime = zero benefits." Retirement exits, PPF interest and capital-gains shields work identically in both — only the invest-to-save deductions (80C/80D) die. Regime calculator logic → · Retirement payouts →

The only 3 Chapter-VIA survivors in new regime

  • 80CCD(2) → Sec 125: employer NPS, 14% of Basic+DA — the biggest new-regime lever. NPS guide →
  • 80CCH: Agniveer Corpus Fund contributions (individual + government).
  • 80JJAA: new-employee wages — employer-side, not for salaried ITRs.
🤔 Unpopular opinion: new regime isn't 'no benefits' — it's different benefits
Count what SURVIVES: ₹75k standard + 87A zero-to-₹12L + employer NPS 14% + PPF/SSY interest still tax-free + EPF interest exempt + gratuity/leave caps intact. The new regime killed DEDUCTIONS, not EXEMPTIONS — a distinction most articles blur. If your wealth sits in PPF + EPF + NPS + employer perks, new regime taxes you lightly while asking zero paperwork. That's a trade most busy people should take.

By TaxSetu Editorial Team · Last reviewed: 7 October 2026

Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in

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Frequently Asked Questions

Standard deduction ₹75k, employer NPS 80CCD(2) 14%, Agniveer 80CCH, family pension ⅓/₹25k, divyang transport ₹3,200/month, and official-duty allowances. Full table on this page + regime guide.

Yes — gratuity (₹20L), leave encashment (₹25L), VRS and commutation are Section 10 exemptions that work in both regimes. Exit payouts.

No — PPF/EPF/SSY interest and maturity are exempt in both regimes. Only the 80C contribution deduction needs the old regime. EPF/PPF rules.

Yes — capital-gains exemptions and the ₹1.25L equity shield are identical in both regimes. CG exemptions.