How to Save Tax Other Than 80C: Deductions and Exemptions for 2026-27

  • CA Meet Dhrangadhariya
  • May 14, 2026

Last updated: 25 July 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP

Quick summary

  • Besides section 80C, you can save tax through NPS (₹50,000 extra), health insurance (up to ₹1 lakh), home loan interest, education loan interest, donations, rent, disability and treatment deductions, and exempt life insurance maturity.
  • Most of these work only in the old tax regime. In the new regime the standard deduction (₹75,000) and the employer’s NPS contribution are the main benefits.
  • Each deduction now has a new section number in the Income-tax Act, 2025 from Tax Year 2026-27: for example 80D is section 126 and 80E is section 129.
  • Compare your tax under both regimes before you choose.

Section 80C is the best known deduction, but it is only one of many. If you are in the old tax regime, these other sections can reduce your tax further. From 01/04/2026 the Income-tax Act, 2025 applies, and each deduction has a new section number, shown below.

Deductions other than 80C

Deduction Limit Section in 1961 Act Section in 2025 Act
Own contribution to NPS ₹50,000, over and above 80C 80CCD(1B) 124(3)
Health insurance, preventive check-up, medical for senior citizens ₹25,000 self and family (₹50,000 if senior), ₹25,000 for parents (₹50,000 if senior); preventive check-up ₹5,000 within these 80D 126
Dependant with disability ₹75,000 or ₹1,25,000 80DD 127
Treatment of specified diseases ₹40,000 or ₹1,00,000 (senior citizen) 80DDB 128
Education loan interest Whole interest, 8 years 80E 129
First-time buyer home loan interest (loans of FY 2016-17) ₹50,000 80EE 130
Donations 100% or 50%, with a 10% limit for some 80G 133
Rent without HRA Up to ₹60,000 80GG 134
Contributions to political parties Whole amount, other than cash 80GGC 137
Savings account interest ₹10,000 80TTA 153
Deposit interest, senior citizens ₹50,000 80TTB 153
Person with disability ₹75,000 or ₹1,25,000 80U 154

Chapter VIII of the 2025 Act contains these deductions. The loan interest deduction for electric vehicles (80EEB) ended for loans sanctioned after 31/03/2023, and the additional affordable housing interest (80EEA) was for loans sanctioned up to 31/03/2022.

Other ways to save tax

  • Home loan interest: up to ₹2 lakh a year on a self-occupied house (section 24(b) of the 1961 Act, section 22 of the 2025 Act). On a let-out house the whole interest is deducted against the rent, with the loss set-off limited to ₹2 lakh a year.
  • Exempt allowances and HRA: HRA, LTA, children education allowance and others reduce taxable salary in the old regime.
  • Exempt insurance proceeds: the maturity amount of a life insurance policy is exempt if the premium conditions are met: for policies issued from 01/04/2012, premium up to 10% of sum assured (15% for special policies), and for policies issued on or after 01/04/2023 the total premium must be below ₹5 lakh a year, or below ₹2.5 lakh for unit linked policies.
  • Agniveer Corpus Fund: the whole contribution is deductible.

Employer contribution to NPS

If your employer contributes to your NPS account, the contribution is deductible up to 10% of salary (14% for Government employers) in the old regime. In the new regime the limit is 14% for all employers. This is the one major deduction that works in both regimes.

What works in the new tax regime?

  • Standard deduction: ₹75,000 for salary and pension (₹25,000 for family pension).
  • Employer’s NPS contribution, up to 14% of salary.
  • Interest on a let-out house against its rent.
  • Contribution to the Agniveer Corpus Fund.
  • Travel, daily charges and conveyance allowances, and the disabled employee’s transport allowance.

Old or new regime?

Add up all deductions and exemptions you can claim. If they are large enough (for example HRA, 80C, 80D and home loan interest together), the old regime can still cost less. If they are small, the new regime usually wins. Do this calculation every year, since you choose with your return, and a person without business income must choose the old regime along with the return furnished by the due date.

Frequently asked questions

What can I claim over and above section 80C?

NPS (₹50,000 under 80CCD(1B)), health insurance (80D), education loan interest (80E), donations (80G), rent without HRA (80GG), home loan interest, savings interest (80TTA or 80TTB) and disability related deductions.

What is the limit under section 80D?

₹25,000 for self, spouse and children (₹50,000 if a senior citizen) and the same again for parents, so up to ₹1,00,000 in total when both are senior citizens.

Which of these work in the new tax regime?

Mainly the standard deduction of ₹75,000, the employer’s contribution to NPS, and interest on a let-out house against its rent. Most other deductions need the old regime.

What are the new section numbers?

80D is section 126, 80E is 129, 80G is 133, 80GG is 134, 80TTA and 80TTB are 153, and 80CCD(1B) is 124(3) in the Income-tax Act, 2025.

Official sources

Related reading

Disclaimer

This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.

Deductions, Old Tax Regime, Section 80CCD(1B), Section 80D, Tax Saving, Tax Year 2026-27

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