Income Tax Deductions for FY 2024–25 (AY 2025–26): Sections 80C, 80CCC, 80CCD & 80D
To promote savings and investments among taxpayers, the Income Tax Department offers a range of deductions under Chapter VI-A of the Income-tax Act. While Section 80C is the most well-known, several other provisions also allow taxpayers to reduce their taxable income and overall tax liability. Let’s explore these deductions in detail.
Section 80C – Deductions on Eligible Investments and Payments
Section 80C is one of the most widely utilized provisions under the Income-tax Act, allowing taxpayers to reduce their taxable income through specified investments and expenditures. It is particularly popular for encouraging savings and promoting long-term financial planning.
Eligibility
Who can claim: Only Individuals and Hindu Undivided Families (HUFs) are eligible to claim deductions under Section 80C.
Not eligible: Companies, Partnership Firms, and LLPs are not entitled to claim this deduction.
Maximum Deduction Limit
A maximum of ₹1.5 lakh per financial year can be claimed under Section 80C, deducted from the Gross Total Income.
List of Eligible Investments and Payments under Section 80C
Investment/Payment | Details |
|---|---|
Employee Provident Fund (EPF) | Employee contributions to EPF are eligible for deduction. |
Public Provident Fund (PPF) | Deposits up to ₹1.5 lakh per year in a PPF account qualify. |
Life Insurance Premium | Premiums paid for self, spouse, and children’s life insurance policies. |
Equity-Linked Savings Scheme (ELSS) | Investments in ELSS mutual funds (3-year lock-in). |
National Savings Certificate (NSC) | Investment qualifies; accrued interest (except final year) is also deductible. |
5-Year Bank Fixed Deposits | Fixed deposits with scheduled banks having a minimum lock-in of 5 years. |
Sukanya Samriddhi Yojana | Deposits made for the benefit of a girl child are eligible. |
Principal Repayment of Home Loan | Deduction for the principal component of EMIs paid. |
Stamp Duty & Registration Charges | Allowed in the year of purchase of a residential property. |
Tuition Fees | Fees paid for full-time education of up to two children in India. |
Senior Citizens Savings Scheme (SCSS) | Eligible investments by senior citizens. |
Unit Linked Insurance Plan (ULIP) | Premiums paid for ULIPs for self, spouse, and children. |
Post Office 5-Year Time Deposit | Investment in 5-year post office time deposits. |
Superannuation Fund | Contributions to an approved superannuation fund by an employee. |
Pension Plans (e.g., LIC’s Jeevan Suraksha) | Contributions to notified pension schemes. |
Sukanya Samriddhi Account Deposit | Deposits in accounts for girl child’s future education/marriage |
Deduction Limits Under Section 80C, 80CCC, 80CCD(1), 80CCE, and 80CCD(1B)
Sections 80CCC and 80CCD offer deductions for contributions made to pension schemes, whether personally or through employer contributions. The total deductions across these sections are subject to certain limits.
The combined maximum deduction limit under Section 80C, 80CCC, and 80CCD(1) is ₹1.5 lakh. However, taxpayers can claim an additional deduction of ₹50,000 under Section 80CCD(1B) for contributions to the National Pension Scheme (NPS). This means the total maximum deduction that can be claimed is ₹2 lakh under Section 80C + 80CCC + 80CCD(1) + 80CCD(1B).
Breakdown of Deduction Limits
Sections | Eligible Investments for Tax Deductions | Maximum Deduction |
|---|---|---|
80C | Investments in Equity-Linked Savings Schemes (ELSS), PPF, RPF, Life Insurance Premiums, principal home loan repayment, SSY, NSC, SCSS, etc. | ₹1,50,000 |
80CCC | Payments made towards pension funds | ₹1,50,000 |
80CCD(1) | Contributions to Atal Pension Yojana or other government-notified pension schemes Employed: 10% of Basic Salary + DA | Employed: 10% of Basic Salary + DA Self-employed: 20% of Gross Total Income |
80CCE | Total deduction under Section 80C, 80CCC, and 80CCD(1) | ₹1,50,000 |
80CCD(1B) | Contributions to National Pension Scheme (NPS), which is in addition to the ₹1,50,000 limit under Section 80CCE | ₹50,000 |
80CCD(2) | Employer’s contribution towards NPS, in addition to ₹1,50,000 limit under Section 80CCE Central Government employer: 14% of Basic Salary + DA |
In some cases, you may have eligible deductions or investments under Section 80C, but if you haven’t submitted the required proof to your employer, it could result in excess TDS deductions. However, you can still claim these deductions when e-filing your tax return, as long as you have the necessary supporting documents ready, through platforms like ClearTax.
Section 80TTA – Interest on Savings Accounts
Eligibility for Section 80TTA Deduction:
The Section 80TTA deduction can be claimed by individuals or Hindu Undivided Families (HUFs).
Maximum Deduction Allowed:
The maximum deduction available under Section 80TTA is ₹10,000 for interest earned on savings accounts held in a bank, post office, or co-operative society.
Section 80TTB – Interest from Deposits Held by Senior Citizens
Eligibility for Section 80TTB Deduction:
The Section 80TTB deduction is available to resident senior citizens aged 60 years and above at any point during the financial year.
Maximum Deduction Allowed:
The maximum deduction allowed under Section 80TTB is ₹50,000 for interest earned on deposits with banks, post offices, and co-operative banks
Section 80GG – Deduction on House Rent Paid
Eligibility for Section 80GG Deduction:
The Section 80GG deduction can be claimed by individuals who do not receive House Rent Allowance (HRA) but live in rented accommodations.
Conditions for Claiming Section 80GG:
The taxpayer must be either self-employed or a salaried individual who does not receive HRA.
The rent must be paid for residential purposes only.
The taxpayer, their spouse, minor child, or Hindu Undivided Family (HUF) should not own any residential property in the location where they currently live.
The taxpayer should not own a self-occupied property elsewhere.
Required Form:
The taxpayer must file Form 10BA for claiming this deduction.
Maximum Deduction Available:
The deduction available under Section 80GG is the least of the following:
Rent paid minus 10% of adjusted total income.
₹5,000 per month.
25% of adjusted total income.
Adjusted Gross Total Income Calculation:
Gross Total Income minus:
Long-Term Capital Gains (LTCG), if any.
Short-Term Capital Gains (STCG) under Section 111A.
Deductions under Section 80C to 80U, except for the deduction under Section 80GG.
Income of NRIs or foreign companies taxed under special tax rates (e.g., Section 115A, 115AB, 115AC, 115AD).
For easy filing, online e-filing tools like ClearTax automatically calculate these limits, eliminating the need for complex manual calculations.
Section 80E – Interest on Education Loan
Eligibility for Section 80E Deduction:
An individual can claim a deduction for the interest paid on an education loan taken to pursue higher education. The loan can be for the taxpayer, their spouse, children, or any student for whom the taxpayer is a legal guardian.Duration of Deduction:
The 80E deduction is available for a maximum of 8 years starting from the year in which the interest payment begins or until the entire interest is paid, whichever comes first.No Ceiling Limit:
There is no upper limit on the amount of interest that can be claimed under Section 80E.
Section 80EEA – Interest on Home Loan for First-Time Homeowners
Eligibility for Section 80EEA Deduction:
Section 80EEA provides an additional deduction on interest paid on home loans for first-time homebuyers. This deduction is applicable for individuals who have taken a loan for purchasing or constructing an affordable house.
Maximum Deduction:
Taxpayers can claim a maximum deduction of ₹1.5 lakh per financial year on the interest paid under Section 80EEA.
This deduction can be claimed on housing loans taken between 1st April 2019 and 31st March 2022.
Section 80EE – Interest on Home Loan for First-Time Homebuyers
Applicable From:
This deduction is available starting from Financial Year (FY) 2016-17, provided the home loan was sanctioned within that same financial year.
Eligibility Criteria:
The deduction under Section 80EE can be claimed only by individuals.
On the date of loan sanction, the taxpayer must own only one residential property.
The property’s value should not exceed ₹50 lakh.
The loan amount must be ₹35 lakh or less.
The loan should have been sanctioned between 1st April 2016 and 31st March 2017.
The loan must be obtained from a financial institution.
Deduction Amount:
An additional deduction of ₹50,000 is available for interest paid on the home loan. This is over and above the ₹2 lakh deduction allowed under Section 24 for interest on home loan EMIs.
Section 80EEB – Interest on Electric Vehicle Loan
To promote the adoption of electric vehicles (EVs), the government offers a deduction under Section 80EEB.
Eligibility:
Available to individuals only.
The loan must be taken from a financial institution for the purchase of an electric vehicle.
Deduction Limit:
You can claim a deduction of up to ₹1.5 lakh on the interest paid on such loans
Section 80D – Deduction on Health Insurance Premiums
| Policy Coverage | Deduction for Self & Family | Deduction for Parents | Preventive Health Check-up | Maximum Deduction Allowed |
|---|---|---|---|---|
| Self & Family (all below 60 years) | ₹25,000 | – | ₹5,000 (within limit) | ₹25,000 |
| Self & Family + Parents (all below 60 years) | ₹25,000 | ₹25,000 | ₹5,000 (within limit) | ₹50,000 |
| Self & Family (below 60) + Parents (above 60) | ₹25,000 | ₹50,000 | ₹5,000 (within limit) | ₹75,000 |
| Self & Family + Parents (all above 60 years) | ₹50,000 | ₹50,000 | ₹5,000 (within limit) | ₹1,00,000 |
Additional Key Points
If you and your parents are senior citizens (60 years or older), you can claim up to ₹1,00,000 as a total deduction under Section 80D.
If no health insurance is available for senior citizens, medical expenses incurred can be claimed as a deduction, up to ₹50,000.
Preventive health check-ups are allowed up to ₹5,000, but this is included within the overall deduction limit, not in addition to it.
Mode of Payment
Health insurance premium must be paid in any mode other than cash.
However, payments for preventive health check-ups can be made in cash and still be eligible.
Example:
Rohan, aged 65, pays for his own medical insurance and for his father, who is 90 years old.
Eligible Deduction:
Self: ₹50,000
Father (above 60): ₹50,000
Total Deduction Available: ₹1,00,000 under Section 80D
Section 80DD – Deduction for Medical Treatment of a Dependent with Disability
Eligibility: Available to resident individuals and Hindu Undivided Families (HUFs).
Purpose: Deduction is allowed for expenses incurred on:
Medical treatment (including nursing)
Training and rehabilitation of a dependent with a disability
| Type of Disability | Extent of Disability | Deduction Amount |
|---|---|---|
| Normal Disability | 40% to 79% | ₹75,000 |
| Severe Disability | 80% or more | ₹1,25,000 |
Important Conditions:
A valid disability certificate must be obtained from a prescribed medical authority.
Dependent refers to:
For individuals: Spouse, children, parents, brothers, and sisters.
For HUFs: Any member of the HUF.
The dependent must not claim deduction under Section 80U in their own return
Section 80DDB – Deduction for Specified Medical Treatments
Eligibility: Resident individuals and HUFs
Purpose: For medical expenses incurred on specified diseases or ailments for self or dependents.
| Age of the Person Treated | Deduction Limit |
|---|---|
| Below 60 years | Actual expenses or ₹40,000 (whichever is lower) |
| 60 years and above (Senior Citizens) | Actual expenses or ₹1,00,000 (whichever is lower) |
Key Points:
You must obtain a prescription from a specialist doctor (as notified by the government).
Reimbursement from insurance or employer must be subtracted from the claimed deduction.
Section 80U – Deduction for a Person with Disability (Self)
Eligibility: Available to resident individuals suffering from a disability.
| Type of Disability | Extent of Disability | Deduction Amount |
|---|---|---|
| Normal Disability | Up to 79% | ₹75,000 |
| Severe Disability | 80% or more | ₹1,25,000 |
Additional Notes:
The deduction is fixed and does not depend on the actual expenses incurred.
A valid disability certificate from a prescribed medical authority is mandatory
Section 80G – Tax Benefits on Donations to Approved Charitable Institutions
Under Section 80G of the Income Tax Act, donations made to specified funds and institutions are eligible for tax deductions. These deductions can be 100% or 50%, with or without an upper limit based on Adjusted Gross Total Income (AGTI).
Important Rule on Payment Mode
From FY 2017–18 onwards, donations exceeding ₹2,000 must be made through non-cash modes (cheque, draft, digital payment, etc.) to qualify for a deduction under Section 80G.
Categories of Deductions Under Section 80G
(A) 100% Deduction Without Limit
These donations are eligible for full deduction without any cap:
National Defence Fund (Central Govt.)
Prime Minister’s National Relief Fund
National Foundation for Communal Harmony
Approved educational institutions of national eminence
Zila Saksharta Samiti under a District Collector
State Government Fund for medical relief to the poor
National Illness Assistance Fund
National and State Blood Transfusion Councils
National Trust for Welfare of Persons with Disabilities
National Sports Fund / National Cultural Fund
Fund for Technology Development and Application
National Children’s Fund
Chief Minister’s / Lieutenant Governor’s Relief Funds (State/UT)
Armed Forces Welfare Funds (Army/Navy/Air Force)
Andhra Pradesh CM’s Cyclone Relief Fund (1996)
Maharashtra CM’s Relief Fund (1 Oct 1993 to 6 Oct 1993)
CM’s Earthquake Relief Fund, Maharashtra
Gujarat Earthquake Relief Fund (2001)
Prime Minister’s Armenia Earthquake Relief Fund
Africa (Public Contributions — India) Fund
Swachh Bharat Kosh (from FY 2014–15)
Clean Ganga Fund (from FY 2014–15)
National Fund for Control of Drug Abuse (from FY 2015–16)
(B) 50% Deduction Without Limit
Jawaharlal Nehru Memorial Fund (only up to 31 March 2024)
Prime Minister’s Drought Relief Fund
Indira Gandhi Memorial Trust (only up to 31 March 2024)
Rajiv Gandhi Foundation (only up to 31 March 2024)
Note: Donations made to the above marked with an asterisk () won’t qualify for deduction from FY 2024–25 onwards.*
(C) 100% Deduction With 10% Limit on AGTI
Eligible donations up to 10% of Adjusted Gross Total Income:
Government/local authority/institution promoting family planning
Donations by companies to:
Indian Olympic Association
Other notified institutions for development of sports infrastructure or sponsorships
(D) 50% Deduction With 10% Limit on AGTI
Eligible donations include:
Other charitable institutions approved under Section 80G(5)
Government or local authority for non-family planning charitable purposes
Authorities for planning and development of cities, towns, villages
Corporations under Section 10(26BB) promoting minority communities
Donations for repair/renovation of notified places of worship (temple, mosque, church, gurudwara, etc.)
Section 80GGB – Contributions by Companies to Political Parties
Under Section 80GGB, Indian companies can claim a deduction for the amount donated to a registered political party or an electoral trust.
Eligible Payment Modes: Only non-cash modes are accepted (e.g., cheque, bank transfer, digital payments).
Important Note: The political party must be registered under Section 29A of the Representation of the People Act, 1951
Section 80GGC – Contributions by Individuals to Political Parties
Section 80GGC allows individual taxpayers to claim a deduction for contributions made to:
A registered political party (under Section 29A)
An electoral trust
Conditions:
Donation must be made through any mode other than cash.
This deduction cannot be claimed by companies, local authorities, or any artificial juridical person wholly or partly funded by the government. These entities can instead claim under Section 80GGB
Section 80RRB – Deduction on Royalty Income from Patents
Individuals who receive royalty income from patents registered on or after 1 April 2003 under the Patents Act, 1970, may claim a deduction under Section 80RRB.
Who can claim: Only resident individual patentees
Maximum Deduction: ₹3,00,000 or the actual income received, whichever is lower
Requirement: A certificate in the prescribed form from the designated authority must be furnished.
Section 80QQB – Deduction for Royalty Income of Authors
Section 80QQB offers deductions to Indian resident authors who earn income by way of:
Royalty or copyright fees for literary, artistic, or scientific books (excluding textbooks for schools)
Deduction Limit: ₹3,00,000 or actual royalty income received, whichever is less
Conditions Apply: Certain criteria must be met regarding the nature of the publication and income source.
Section 80 Income Tax Deductions – Summary for FY 2024–25
| Section | Nature of Deduction | Maximum Limit Allowed |
|---|---|---|
| 80C | Investments/expenses like PPF, EPF, NSC, life insurance premium, tuition fees, principal repayment of home loan, Sukanya Samriddhi, ELSS, ULIPs, 5-year FD, SCSS, and other notified schemes. | ₹1,50,000 (combined with 80CCC & 80CCD(1)) |
| 80CCC | Contribution to annuity plans (e.g. LIC) for receiving pension | Included in 80C limit |
| 80CCD(1) | Employee’s contribution to NPS | Included in 80C limit (up to ₹1,50,000) |
| 80CCD(1B) | Additional contribution to NPS | ₹50,000 (over and above 80C limit) |
| 80CCD(2) | Employer’s contribution to NPS | Up to 10% of salary (basic + DA) |
| 80TTA | Interest earned from savings accounts (for non-senior citizens) | ₹10,000 |
| 80TTB | Interest income from banks, post office etc. (senior citizens only) | ₹50,000 |
| 80GG | Rent paid when HRA is not received | Least of: ₹5,000/month, 25% of total income, or rent paid minus 10% of total income |
| 80E | Interest on education loan (for self, spouse, children, or legal wards) | Entire interest for 8 years |
| 80EE | Interest on home loan for first-time buyers (loan sanctioned in FY16–17) | ₹50,000 |
| 80D | Health insurance premium: | |
| – Self, spouse & children (below 60 yrs) | ₹25,000 | |
| – Parents (below 60 yrs) | ₹25,000 | |
| – Parents (above 60 yrs) | ₹50,000 | |
| – Self & Parents (both above 60 yrs) | ₹1,00,000 | |
| – Preventive Health Check-up (included in limits above) | ₹5,000 | |
| 80DD | Maintenance/treatment of a dependent with disability: | |
| – Disability 40% to 79% | ₹75,000 | |
| – Severe disability (80% and above) | ₹1,25,000 | |
| 80DDB | Treatment of specified critical illnesses: | |
| – For individuals < 60 years | Lower of ₹40,000 or actual expense | |
| – For individuals ≥ 60 years | Lower of ₹1,00,000 or actual expense | |
| 80U | For taxpayer with a disability: | |
| – Disability up to 79% | ₹75,000 | |
| – Severe disability (80% and above) | ₹1,25,000 | |
| 80GGB | Donation by companies to political parties or electoral trusts (non-cash only) | 100% of amount donated |
| 80GGC | Donation by individuals to political parties or electoral trusts (non-cash only) | 100% of amount donated |
| 80RRB | Royalty income from patents (registered after 1 April 2003) | Up to ₹3,00,000 or actual income |
| 80QQB | Royalty income of authors (literary, artistic or scientific works) | Up to ₹3,00,000 or actual income |
Final Word (Rewritten)
While Chapter VI-A offers a variety of tax-saving deductions, it’s important for taxpayers to choose those that align with their financial objectives. Selecting the right deductions can help optimize tax savings while also supporting long-term financial planning
