SECTION 80CCD(2) deduction is applicable under New Tax Regime

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Yes, eligible.           

Section 80CCD(2) is available under the new tax regime. This is one of the most commonly missed deductions among salaried employees who switched to the new regime thinking all deductions were gone.

What is still allowed under the new regime:
- Section 80CCD(2): Employer contribution to NPS. Limit is 10 percent of Basic + DA for private employees, 14 percent for central government employees.
- Standard deduction of Rs 75,000 for salaried individuals.
- Section 80CCH: Agniveer contribution (if applicable).
- Family pension standard deduction of Rs 25,000.

What is NOT available under the new regime:
- Section 80C (PPF, ELSS, insurance premium, tuition fees, etc.)
- Section 80D (health insurance)
- HRA exemption under Section 10(13A)
- LTA exemption
- Home loan interest deduction under Section 24

So if your employer contributes to NPS on your behalf, that amount is deductible under 80CCD(2) even in the new regime. Check Form 16 Part B to confirm the employer NPS contribution figure.

This [guide to tax saving under the new tax regime for FY 2026-27](https://taxgarden.in/blog/tax-saving-under-new-tax-regime-fy-2026-27-strategies-india) covers all deductions that survive the regime switch.

Yes, deduction under Section 80CCD(2) can be claimed even in the New Tax Regime. This section refers to the contribution made by your employer towards your NPS account. One of the few deductions that remains in the New Tax Regime is under section 115BAC.

Please be mindful of the difference:
* 80CCD(1) - Employee's own contribution to NPS, not allowed in the new tax regime
* 80CCD(1B) - Extra Rs 50,000 deduction on own contribution to NPS, not allowed in the new tax regime
* 80CCD(2) - Contribution made by employee to their NPS account is allowed in both old as well as new tax regime.

For private sector employees, who opt for new tax regime, the same is restricted to 14% of Basic + DA (forming part of retirement benefit) put by your employer into your NPS account. So, if you get your contribution in your Form 16 from your employer towards your NPS, you can claim 80CCD(2) while filing under new tax regime as well.