Old Chapter VI-A → Sections 123–154
Deductions List: Section 80C Is Now Section 123 (Limits Unchanged)
The legal ways to save tax. Remember: these deductions work only in the OLD REGIME (except employer NPS 80CCD(2), which works in both). In the new Act, the 80C–80U series became Sections 123–154 — same benefits, new addresses.
Popular Deductions — Mapping + Limits
| Old (1961) | New (2025) | What it covers | Limit |
|---|---|---|---|
| 80C | 123 | LIC premium, PPF, ELSS, EPF, Sukanya Samriddhi, NSC, home-loan principal, tuition fees, 5-yr FD | ₹1,50,000 |
| 80CCD(1B) | 123 series | Own contribution to NPS (over and above 80C) | ₹50,000 |
| 80D | 124 | Health insurance premium — self/family below 60: ₹25k • seniors: ₹50k • parents separate | ₹25k – ₹1L |
| 80E | 125 | Education-loan interest (not principal) — for 8 years | No limit |
| 80G | 123–154 series | Donations to approved funds (50%/100% depending on fund) | Varies |
| 80TTA | 153(2)(a) | Savings-account interest (below 60 yrs) | ₹10,000 |
| 80TTB | 153(2)(b) | Senior citizens — bank/post-office interest (FD + savings) | ₹50,000 |
| 80U / 80DD | 123–154 series | Disability-related deductions | ₹75k / ₹1.25L |
| 80CCD(2) | Both regimes ✓ | Employer's NPS contribution | Up to 14% of Basic (pvt sector) |
ℹSome sub-mappings differ slightly across published sources — verify against the official CBDT correspondence table. Limits and purposes are unchanged everywhere.
Example — Using 123 (old 80C) fully — what's it worth?
Meera is in the old regime, in the 30% slab. She used Section 123 fully: EPF ₹72k + ELSS ₹50k + LIC ₹28k = ₹1.5L.
• Tax saved = 1,50,000 × 30% = ₹45,000 + cess ₹1,800 = ₹46,800 saved
• In the new regime this deduction is worth zero — which is why comparing regimes matters.
• Tax saved = 1,50,000 × 30% = ₹45,000 + cess ₹1,800 = ₹46,800 saved
• In the new regime this deduction is worth zero — which is why comparing regimes matters.
Old vs New — Which Deduction Lives Where?
Act 1961 (Old)
Available in the OLD regime:
- Sec 123 (80C) ₹1.5L + NPS ₹50k
- Sec 124 (80D) health insurance
- HRA exemption, LTA
- Home-loan interest (self-occupied) ₹2L
- 80TTA/80TTB, 80E, 80G...
- Standard deduction ₹50,000
Act 2025 (New)
Available in the NEW regime (that's all):
- Standard deduction ₹75,000 (higher!)
- Employer NPS 80CCD(2)
- Certain employer-PF/Agniveer-related items
- (...and nothing else )
Example — How many deductions before the old regime wins? (₹15L salary)
Total deductions of roughly ₹5.5 lakh (80C/123 ₹1.5L + HRA ₹2.5L + home loan ₹1.5L...) is the tipping point at ₹15L income. Lower income → lower breakeven; higher income → higher. Exact number? Drop your figures into the calculator — answer in 30 seconds, or read the regime decision guide.
Our take ✍️
If we could keep only three old-regime deductions, we'd take employer NPS (survives even in new!), HRA, and 80D — everything else is garnish. And the unpopular truth: if your total stack is under ₹3L, stop optimizing deductions and switch to new.
🧮 Quick maths: count the automatic ₹2L+ first
Before investing a rupee for 80C, tally what's already there: your EPF share (~₹80k-₹1L for most) + kids' tuition fees + existing LIC premiums + home-loan principal. Most salaried filers discover ₹1L+ of 'free' 80C — leaving only a small top-up (PPF/ELSS) to reach ₹1.5L. Then stack beyond the cap: NPS extra ₹50k + employer NPS 14% + 80D. The list above is a menu, not a to-do list — order what fits.
Go deeper: old-regime master list → · PPF vs ELSS vs NPS →
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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