Many taxpayers believe the new income tax regime wipes out all deductions and exemptions — but that’s only partly true. For Assessment Year 2025–26, several benefits still remain, offering opportunities to save thousands of rupees.

Efiletax has listed 10 key tax breaks that salaried employees, pensioners, and business owners can continue to claim.

At the top is the ₹50,000 standard deduction, available to both salaried individuals and pensioners. Another major relief is the Section 115BAC rebate, which ensures no tax liability for incomes up to ₹7 lakh through a flat ₹25,000 rebate.

Equity investors also have clarity: from July 23, 2024, long-term capital gains (LTCG) on listed shares and equity mutual funds are taxed at 12.5% for gains above ₹1.25 lakh.

Retirement-related perks are intact. Employer contributions to the National Pension System (NPS) under Section 80CCD(2) qualify for deductions within set limits. Contributions to the Agniveer Corpus Fund are deductible as well.

Healthcare benefits remain under Section 80D, which allows deductions on health insurance premiums for self, spouse, children, and parents. In addition, gratuity and leave encashment are still exempt from tax.

Disabled taxpayers continue to receive a fully exempt transport allowance, while family pensioners can claim a deduction of up to ₹15,000 or one-third of the pension (whichever is lower).

Business owners also benefit, with Section 80JJAA providing a deduction on additional employee costs, encouraging new hiring.

Bottom line: The new regime is not “deduction-free.” Reviewing what’s still available before filing can help cut down your final tax bill.