Many taxpayers today are opting for the New Tax Regime since it offers no income tax on salary income up to Rs 12.75 lakh, but they often think it offers no deductions at all. This can lead to many taxpayers missing out on important tax deductions that are still available under the new regime.
Even though popular deductions like Section 80C, HRA, LTA and Section 80D are largely not allowed, the New Tax Regime still allow a few key deductions that can help reduce taxable income and lower overall tax liability while filing ITR for FY 2025-26 (AY 2026-27).
