Old Regime Deductions Master List (2026-27) + Breakeven Math
Every major old-regime deduction in one stacked table — then the breakeven calculation that tells a ₹20 lakh earner exactly how much they must claim before old beats new.
The old regime is a game of stacking: no single deduction beats the new regime's low slabs, but five or six stacked together often do. Below is every block worth stacking, with current limits.
The master stack table
| # | Deduction | Section (old → new) | Limit |
|---|---|---|---|
| 1 | Standard deduction | 16(ia) — auto | ₹50,000 |
| 2 | HRA exemption | 10(13A) → new Act | 40/50% formula (metro edge) |
| 3 | 80C basket (EPF/PPF/ELSS/LIC…) | 80C → Sec 123 | ₹1,50,000 |
| 4 | Own NPS top-up | 80CCD(1B) → Sec 124 | ₹50,000 extra |
| 5 | Employer NPS | 80CCD(2) → Sec 125 | 14% Basic+DA |
| 6 | Health insurance | 80D | ₹25k / ₹50k (+ parents) |
| 7 | Home-loan interest (self-occ) | 24(b) | ₹2,00,000 |
| 8 | Education-loan interest | 80E | No cap (8 yrs) |
| 9 | Donations | 80G | 50/100% (cash cap ₹2,000) |
| 10 | Savings interest | 80TTA | ₹10,000 |
| 11 | Senior interest (FD+savings) | 80TTB | ₹50,000 |
| 12 | LTA travel | 10(5) | 2 trips / 4-yr block |
| 13 | Disability / treatment | 80U / 80DDB | ₹75k–1.25L / ₹40k–1L |
Three stacking mistakes
- Counting 80C twice: EPF + PPF + ELSS + LIC share ONE ₹1.5L cap. An extra ₹50,000 in PPF beyond the cap earns interest but zero deduction.
- Forgetting the free blocks: standard ₹50,000 + 80TTA ₹10,000 need zero investment — always count them first.
- Choosing by April: employer TDS declaration is not final — compute both regimes with REAL numbers in March and pick at ITR time. The 60-second wizard below does the trial run.
Row 9 done right: 80G donations guide (100% vs 50%, 10BE receipts) →
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
Roughly above ₹20L with big HRA plus home-loan interest — a ₹20L earner needs about ₹6.6L in deductions to match the new regime.
Usually HRA in metros (often ₹2-3L+), then 80C's ₹1.5L and home-loan interest up to ₹2L.
Salaried individuals (no business income) can switch every year at ITR time. Business income cases face restrictions via Form 10-IEA.
No — the 12BB declaration only sets TDS. The regime you pick in the ITR is what counts.
Standard deduction ₹50,000 and 80TTA savings interest ₹10,000 — always count these free blocks first.