Stop 6 of 7
Deductions under the old regime
The things you can subtract from your income, and how much of each one counts.
A deduction is an amount you can subtract from your income before tax is worked out on it. Only the old regime allows the deductions below — the new regime does not. Each one has its own limit; if you spend more than the limit, only the limit counts.
Provident fund, life insurance and similar
Money you put into things like provident fund, life insurance premiums, and other listed savings — section 123 (old law: 80C) — up to ₹1,50,000* a year.
Extra contribution to a pension scheme (NPS)
Your own extra contribution to the National Pension System (NPS), on top of the limit above — section 124(3) (old law: 80CCD(1B)) — up to ₹50,000* a year.
Health insurance premiums
Premiums for health insurance for yourself, your spouse and your dependent children — section 126(2)(a) (old law: 80D(2)(a)) — up to ₹25,000* a year, rising to ₹50,000* (section 126(8)(a) (old law: 80D(4))) if you or your spouse is a senior citizen. A small part of this limit can be used for preventive health check-ups.
Premiums for your parents' health insurance are counted separately — section 126(2)(b) (old law: 80D(2)(b)) — up to ₹25,000* a year, rising to ₹50,000* (section 126(8)(a) (old law: 80D(4))) if your parent is a senior citizen.
Home loan interest, for a house you live in
Interest paid on a home loan for a house you live in yourself — section 22(2)(a) (old law: 24(b)) — up to ₹2,00,000* a year. A lower limit applies in some cases (for example some older loans, or loans for repairs); this site uses the main limit.
Interest from savings accounts
If you are not a senior citizen, interest from savings bank accounts (not fixed or recurring deposits) — section 153(2)(a) (old law: 80TTA) — up to ₹10,000* a year. Senior citizens get a larger limit instead, which also covers deposit interest — see senior citizens.
Worked example
Vikram, an engineer, uses the old regime. His salary is ₹12,00,000 a year. During the year he pays ₹1,50,000 towards provident fund and life insurance, ₹50,000 extra into NPS, ₹25,000 in health insurance for himself and his family, ₹25,000 for his parents' health insurance, and ₹2,00,000 in interest on the home loan for the house he lives in. He also earns ₹8,000 in savings account interest.
All of these are within their limits, so his deductions add up to ₹4,58,000. After the standard deduction and these deductions, his total income is ₹7,00,000, and his tax for the year works out to ₹54,600*.
Try your own numbers, in either regime, on the calculator.
This page covers tax year 2026-27 (1 April 2026 to 31 March 2027). For the official rules, see incometax.gov.in.