Income tax deductions let you reduce your taxable income by claiming specific expenses and investments, lowering the tax you actually owe. Almost all of them are available only if you choose the Old Tax Regime, since the New Tax Regime, now the default, strips most of them away in exchange for lower tax rates. Here’s the complete list, followed by the detail on each one.
Complete List of Income Tax Deductions
Note: You can click on any of the section names for a detailed guide on what is allowed, excluded and how to make claims.
| Section | What It Covers | Maximum Limit | Old Regime Only? |
|---|---|---|---|
| 80C | PPF, EPF, ELSS, life insurance, tax-saving FDs, home loan principal, children’s tuition | ₹1,50,000 | Yes |
| 80D | Health insurance premiums for self, family, and parents | ₹25,000–₹75,000, depending on age | Yes |
| 80DD | Medical expenses for a disabled dependent | ₹75,000–₹1,25,000 (flat, by severity) | Yes |
| 80DDB | Treatment costs for specified critical illnesses | ₹40,000–₹1,00,000, depending on age | Yes |
| 80U | Disability of the taxpayer themselves | ₹75,000–₹1,25,000 (flat, by severity) | Yes |
| HRA | Rent paid for your residence | Calculated (lowest of three formulas) | Yes |
| 24(b) | Home loan interest, self-occupied property | ₹2,00,000 | Yes |
| 80EEA | Additional home loan interest (affordable housing, older loans only) | ₹1,50,000 | Yes |
| 80EEB | Electric vehicle loan interest (older loans only) | ₹1,50,000 | Yes |
| 80E | Education loan interest | No upper limit | Yes |
| 80CCD(1B) | Voluntary NPS contribution | ₹50,000 | Yes |
| 80CCD(1) | Self-employed pension/NPS contribution | Up to 20% of gross income | Yes |
| 80CCD(2) | Employer’s NPS contribution | Up to 14% of salary (Basic + DA) | Available in both regimes |
| 80TTA | Savings account interest | ₹10,000 | Yes |
| 80G | Donations to approved charities and relief funds | 50% or 100% of donated amount, depending on the organisation | Yes |
| 80GGC | Contributions to registered political parties | 100% of contribution | Yes |
| Standard Deduction | Flat deduction for salaried employees and pensioners | ₹75,000 (new regime), ₹50,000 (old regime) | Available in both regimes |
| Family Pension Deduction | For those receiving a family pension | ₹25,000 or one-third of pension, whichever is lower | Available in both regimes |
A note on section numbers: the new Income Tax Act, 2025, which took effect April 1, 2026, renumbered several provisions in the Income Tax Act, 1961. This guide uses the older, still widely recognised numbers, since both continue to be used interchangeably during this transition. The rates and limits themselves are unchanged.
Old Tax Regime or New Tax Regime: Which Should You Choose?
This is the single most important decision affecting which deductions actually apply to you. The New Tax Regime is now the default, offering lower tax slabs and a flat ₹75,000 standard deduction for salaried employees, with a rebate that brings your effective tax to zero if your income is up to ₹12.75 lakh. In exchange, you give up almost every other deduction on this list, no HRA, no 80C, no health insurance premiums.
The Old Tax Regime is generally worth considering if:
- Your annual income is above roughly ₹13-15 lakh
- You pay significant rent and receive HRA from your employer
- You’re actively investing in PPF, EPF, ELSS, or life insurance
- You’re repaying a home loan or an education loan
Section 80C: Investments and Expenses, Up to ₹1.5 Lakh
Section 80C is the most widely used deduction in India, covering a broad range of investments and expenses up to a combined ₹1.5 lakh a year.
Fixed-return options: EPF contributions (the amount your employer deducts from your salary automatically counts), PPF (15-year lock-in, fully tax-free), and 5-year tax-saving FDs or NSC (guaranteed returns, though the interest itself is taxable).
Market-linked option: ELSS mutual funds, with the shortest lock-in among 80C options at 3 years, and the highest growth potential.
Insurance and family: Life insurance premiums for yourself, your spouse, or children, and tuition fees paid for up to two children at any school, college, or university in India.
Home loan: The principal portion of your EMI, not the interest, which falls under Section 24(b) instead.
Section 80D: Health Insurance Premiums
Section 80D is entirely separate from your 80C limit and covers health insurance premiums:
- Up to ₹25,000 for yourself, your spouse, and dependent children
- An additional ₹25,000 if you also pay premiums for parents below 60
- That additional amount rises to ₹50,000 if your parents are senior citizens
If you cover both your own family and senior citizen parents, your total 80D deduction can reach ₹75,000.
A smaller, often-missed benefit sits inside this same limit: up to ₹5,000 for preventive health check-ups, which can be paid in cash, unlike insurance premiums. This isn’t extra on top of your 80D limit, it’s included within it.
Sections 80DD, 80DDB, and 80U: Medical and Disability Support
These three sections cover different situations involving serious illness or disability:
80DD: For a taxpayer supporting a disabled dependent (spouse, child, parent, or sibling), covering medical treatment, training, and rehabilitation. A flat ₹75,000 applies for 40-80% disability, rising to ₹1,25,000 for severe disability (80% or more), certified by a recognised medical authority.
80DDB: For actual medical expenses on specified critical illnesses (cancer, chronic renal failure, certain neurological conditions, among others). Up to ₹40,000 below age 60, rising to ₹1,00,000 for senior citizens. Any amount already reimbursed by insurance must be subtracted from your claim.
80U: The same structure as 80DD, but for the taxpayer’s own certified disability rather than a dependent’s. You cannot claim both 80DD and 80U for the same person.
HRA and Section 24(b): Rent and Home Loan Interest
HRA: If your salary includes a House Rent Allowance component and you live in a rented home, your exemption is the lowest of three figures: the actual HRA received, 50% of basic salary in a metro city (40% in a non-metro), or actual rent paid minus 10% of basic salary. Paying rent to parents can qualify too, provided the property is in their name and you actually transfer the money, with your parents declaring it as their own income.
Section 24(b): Covers home loan interest, up to ₹2 lakh a year for a self-occupied property. For a let-out property, interest paid can offset your rental income without the same cap. This deduction is not available under the New Tax Regime, one of the main reasons homeowners with significant EMIs often stay on the old one.
Sections 80EEA and 80EEB: Grandfathered Home and EV Loan Benefits
Both of these sections are closed to new loans but remain available if you took the loan within their original eligibility windows:
80EEA: An additional ₹1.5 lakh on home loan interest, on top of Section 24(b), for loans sanctioned between April 1, 2019, and March 31, 2022, on a property valued up to ₹45 lakh.
80EEB: Up to ₹1.5 lakh on electric vehicle loan interest, for loans sanctioned between April 1, 2019, and March 31, 2023.
If your loan falls within these windows, you can keep claiming the deduction annually until the loan is fully repaid.
Section 80E: Education Loan Interest
Section 80E is unusual in having no upper limit. You can deduct the entire interest portion of an education loan taken for yourself, your spouse, or your children, for up to 8 consecutive years from when you start repaying. It doesn’t extend to loans taken for siblings or other relatives, and only the interest counts, not the principal.
Section 80CCD: NPS Contributions, for Employees and the Self-Employed
This section covers retirement contributions to the National Pension System, and it works differently depending on your employment situation:
80CCD(1B): A voluntary contribution of up to ₹50,000 to your NPS Tier-1 account, on top of your 80C limit, available whether you’re salaried or self-employed.
80CCD(1): If you’re self-employed, your own NPS contribution is deductible up to 20% of your gross total income, within the overall Section 80C ceiling. This is meaningfully different from the salaried employee limit, which is capped at 10% of salary under the same provision.
80CCD(2): Your employer’s contribution to your NPS account, deductible up to 14% of salary (Basic + DA). This is genuinely significant because it’s one of the very few deductions still available under the New Tax Regime, making it worth discussing with HR even if you’ve moved to the new regime.
Section 80TTA: Savings Account Interest
Interest earned on your savings account balance is technically taxable as “income from other sources,” but Section 80TTA exempts up to ₹10,000 a year across all your savings accounts combined. This doesn’t extend to fixed deposits or recurring deposits, only savings account interest.
Section 80G: Charitable Donations
Donations to approved relief funds or registered charities qualify for either a 50% or 100% deduction, depending on the specific organisation. To claim it, you need a valid 80G receipt showing the organisation’s name, PAN, and registration number, simply transferring money isn’t enough. Cash donations above ₹2,000 don’t qualify at all, so donate digitally or by cheque if you want the deduction.
Section 80GGC: Political Contributions
Contributions to registered political parties or electoral trusts qualify for a full 100% deduction, but only if paid through a traceable method, cheque, demand draft, UPI, or net banking. No cash donations are accepted under this section.
What Deductions Survive Under the New Tax Regime?
The New Tax Regime removes most deductions, but not all:
- Standard Deduction (₹75,000): Automatic for salaried employees and pensioners, no bills or receipts required.
- Section 80CCD(2): Your employer’s NPS contribution, up to 14% of salary, remains deductible even in the new regime.
- Family Pension Deduction: ₹25,000 or one-third of the pension received, whichever is lower.
Everything else on the list above, HRA, 80C, health insurance premiums, requires the Old Tax Regime.
How Do You Actually Claim These Deductions?
For salaried employees, this typically happens in three stages:
- April: Your employer asks for an Investment Declaration, essentially your stated plan for the year, which they use to estimate your monthly TDS.
- January or February: You submit actual proof, PPF statements, rent receipts, insurance premium payments, to your employer’s payroll system. If your actual investments fall short of your declaration, expect higher TDS deducted from your remaining salary.
- July, at ITR filing: If you missed the proof submission deadline or have additional deductions to claim, you can still declare them directly on the income tax portal when filing your return, and claim any excess tax back as a refund.
You don’t need to attach documents when filing your ITR itself, but keep them stored safely in case your return is selected for scrutiny later.
Frequently Asked Questions
What is the full list of income tax deductions in India?
The major deductions include 80C (₹1.5 lakh, investments), 80D (health insurance), 80DD/80DDB/80U (disability and critical illness), HRA and Section 24(b) (rent and home loan interest), 80E (education loan interest, no limit), 80CCD (NPS contributions), 80TTA (savings interest), and 80G (donations). See the full table above for exact limits.
What are the different types of income tax deductions?
They generally fall into a few categories: investment-linked (80C, 80CCD), insurance and medical (80D, 80DD, 80DDB, 80U), housing (HRA, 24b, 80EEA), education and EV loans (80E, 80EEB), everyday deductions (80TTA, 80G, 80GGC), and flat deductions requiring no proof (Standard Deduction, Family Pension Deduction).
Which deductions are available if I choose the New Tax Regime?
Only three: the Standard Deduction (₹75,000), Section 80CCD(2) for your employer’s NPS contribution, and the Family Pension Deduction. All other deductions require the Old Tax Regime.
Can self-employed individuals claim NPS deductions?
Yes. Self-employed taxpayers can claim up to 20% of their gross total income under Section 80CCD(1), a higher percentage than the 10% limit that applies to salaried employees under the same section, plus the additional ₹50,000 under Section 80CCD(1B) available to everyone.
Is a donation under Section 80G always fully deductible?
No. Depending on the specific organisation, you can claim either 50% or 100% of the donated amount. You also need a valid 80G receipt with the organisation’s PAN and registration number, and cash donations above ₹2,000 don’t qualify at all.
Can I claim both HRA and a home loan deduction at the same time?
Yes, if you’re paying rent in one city while your home loan is for a property elsewhere, for example. Under the Old Tax Regime, both HRA exemption and the Section 24(b) home loan interest deduction can be claimed simultaneously.
Do I need to submit proof of my deductions when filing my ITR?
No. The ITR filing process itself is paperless, you simply declare the amounts. However, keep your actual receipts and statements stored safely, since you’ll need to produce them if your return is selected for verification later.
Last Updated on 2 weeks ago by Team Paisaseekho
