Paying high taxes? You can legally reduce your tax bill by claiming deductions under Sections 80C to 80U while filing ITR for AY 2025-26. This guide covers all eligible deductions in simple terms—no jargon, just clear savings!
The Income Tax Act allows deductions on certain investments, expenses, and payments. By claiming them, you lower taxable income and pay less tax.
✅ Investments that qualify:
EPF, PPF, NSC, ELSS, SSY, SCSS, 5-Year FD
Life insurance premium (for self/spouse/children)
✅ Expenses that qualify:
Children’s tuition fees (max 2 kids)
Home loan principal repayment
Stamp duty & registration charges
Who’s Covered? | Max Deduction |
---|---|
You + family (<60 years) | ₹25,000 |
Parents (<60) | +₹25,000 |
You/parents (60+) | ₹50,000 each |
Total (if all seniors) | ₹1,00,000 |
➕ Extra ₹5,000 for health check-ups |
Salaried? Invest 10% of (Basic + DA)
Self-employed? Invest 20% of income
Extra ₹50,000 (80CCD(1B)) beyond 80C limit
???? Full interest deduction (No limit!) for higher studies (self/kids).
PM Relief Fund: 100% deduction
Others: 50% deduction (No cash above ₹2,000)
Below 60? ₹10,000 (Savings account)
60+? ₹50,000 (Savings + FD interest)
40%-80% disability: ₹75,000
80%+ disability: ₹1,25,000
Feature | Old Regime | New Regime |
---|---|---|
Deductions (80C-80U) | ✅ Yes | ❌ Only NPS (80CCD(2)) |
Tax Rates | Higher | Lower |
Best For | Big investors | Minimal savings |
Smart Choice:
Old regime = More deductions (Home loan, insurance, etc.)
New regime = Lower rates (Fewer deductions)
Yes! 80C (₹1.5L) + 80CCD(1B) (₹50,000 extra for NPS).
Yes, ₹5,000 (within overall limit).
No! 80GG is only if you don’t get HRA.
100% interest (No limit!).
Only ₹2,000. Beyond that, use UPI/bank transfer.
✔ Plan early – Don’t wait till March!
✔ Keep proofs – Premium receipts, NPS statements, etc.
✔ Compare regimes – Use Excel or a tax calculator.
✔ File on time – Avoid penalties!
By using these deductions smartly, you can save thousands legally. Share this guide with friends & family to help them too!
Maximizing deductions under Sections 80C to 80U can lead to substantial tax savings. Evaluate your investments, insurance, and expenses to optimize deductions. File your ITR accurately before the deadline to avoid penalties.
Pro Tip: Consult a tax advisor to choose between the old and new regimes based on your financial situation.
Have questions about tax filing or financial compliance? Share your thoughts, and let our experts guide you with accurate and reliable advice.
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Post By : CA Madhur
May 26, 2025