How to Legally Save Income Tax in 2026: What Still Works

Under the new regime, income up to ₹12 lakh (₹12.75 lakh for salaried) is tax-free thanks to the Section 87A rebate plus standard deduction.

Most old deductions (80C, 80D, HRA) are dead in the new regime — the one big survivor is employer NPS under 80CCD(2), up to 14% of salary.

The old regime still rewards 80C (₹1.5 lakh), 80D health cover, ₹2 lakh home-loan interest and an extra ₹50,000 NPS under 80CCD(1B).

Run both regimes through a calculator before filing — high deductions can still tip the old regime in your favour.

From FY2026-27, senior citizens get a bigger ₹1 lakh interest deduction under Section 80TTB.