New Tax Regime? 7 Deductions You Lose Forever

The new income tax regime offers lower slab rates, but you give up popular deductions like 80C, HRA, and home loan interest. Before choosing, know exactly what you are trading away.

Here's what happened: The new tax regime has lower slab rates but removes over 70 deductions and exemptions available under the old regime.. Key benefits gone include Section 80C (₹1.5 lakh limit), HRA exemption, standard deduction on rent, and home loan interest under Section 24(b).. From FY 2023-24, the new regime became the default — meaning you must actively opt out to claim old-regime deductions..

What you should do: Calculate your taxable income under BOTH regimes using a free tax calculator before filing your ITR — the gap can be ₹20,000 to ₹80,000+.. Check if your employer has already switched you to the new regime by default — submit Form 10-IEA to opt back into the old regime if needed.. If you have a home loan, large LIC premiums, or pay significant rent, list all your deductions — old regime likely saves you more money..

Salaried employees can switch between old and new regimes every year at ITR filing time — but business owners can only switch once. Lock in your choice carefully.