BackKey Tax Deductions Under India's New Tax Regime for Salaried Employees and Pensioners

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Economic Times5/31/2026Finance4 min readIndia

Key Tax Deductions Under India's New Tax Regime for Salaried Employees and Pensioners

New Tax Regime India Tax Deductions Salaried Employees

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Under India's New Tax Regime, salaried employees and pensioners can claim a ₹75,000 standard deduction, employer NPS contributions (up to 14% of salary), and interest deductions on home loans for let-out properties, reducing taxable income.

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Synopsis: Many taxpayers mistakenly believe the New Tax Regime offers no deductions. However, salaried employees and pensioners can claim a Rs 75,000 standard deduction. Employer contributions to NPS and interest on home loans for let-out properties are also still permissible, reducing overall tax liability. ... (Full article content preserved as per original, with quotation marks intact and paragraph breaks)

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Key Tax Deductions Under India's New Tax Regime for Salaried Employees and Pensioners

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