Retirement funds under new tax regime

Yes, for AY 2026-27 IT act 1961 is applicable with all the benefits available in the act.

Under the new tax regime, most of the common retirement-based tax benefits have been done away with. This means that the investments that you make into your own contributions of PPF, EPF (under Section 80C) and NPS under Sections 80CCD(1) and 80CCD(1B) are not available for claiming deductions.

That said, a few critical retirement-related benefits are still available:

* Employer contribution to NPS under Section 80CCD(2) still has the deductibility up to the permissible limits.
* Gratuity and eligible leave encashment continue to be exempted as per the prevailing rules.
* The interest that accumulates on preferred retirement savings like PPF remains to be exempt wherever the law provides it.

If you have NPS being paid to you as a part of your remuneration package by your employer then it is likely one of the best methods to create a corpus for retirement while still having your tax outgo reduced under the new tax regime. Alternatively, you could always invest in such retirement savings products to plan for long-term security, without having any tax deductions to claim upfront.