Tax Deductions Guide

Covers PPF, ELSS, NSC, life insurance premium, tuition fees, home loan principal repayment, Sukanya Samriddhi, 5-year FD, and senior citizen savings scheme.

Eligibility: Individuals & HUFs

Additional deduction over and above 80C limit for contributions to NPS Tier-I account. Total NPS benefit can be up to ₹2 lakh (₹1.5L under 80C + ₹50K here).

Eligibility: Individuals (salaried & self-employed)

₹25,000 for self/family (₹50,000 if senior citizen). Additional ₹25,000 for parents (₹50,000 if parents are senior citizens). Preventive health check-up included up to ₹5,000.

Eligibility: Individuals & HUFs

₹75,000 for dependent with 40%+ disability; ₹1,25,000 for severe disability (80%+). Medical certificate from government hospital required.

Eligibility: Resident Individuals & HUFs

Deduction on interest paid on education loan for higher studies (self, spouse, children). Available for 8 years from the year repayment starts. Full interest amount deductible.

Eligibility: Individuals only

Additional interest deduction for loans sanctioned between 01-Apr-2019 and 31-Mar-2022. Property stamp duty value must not exceed ₹45 lakhs.

Eligibility: Individual first-time home buyers

100% deduction for PM National Relief Fund, National Defence Fund. 50% deduction for other approved funds. Some donations have 10% of gross income cap.

Eligibility: All assessees

Least of: ₹5,000/month, 25% of total income, or rent paid minus 10% of total income. Must not own residential property at place of employment.

Eligibility: Individuals not receiving HRA

Interest earned on savings bank accounts (not FD/RD). Covers all banks including post office savings account.

Eligibility: Individuals & HUFs (non-senior citizens)

Interest from savings accounts, fixed deposits, and recurring deposits. Replaces 80TTA for senior citizens. Covers banks and post office deposits.

Eligibility: Resident senior citizens (60+)

Interest on home loan for self-occupied property. ₹2,00,000 limit for self-occupied; no limit for let-out property (net of rental income). Pre-construction interest allowed in 5 installments.

Eligibility: Individuals & HUFs

Exempt amount is least of: actual HRA received, 50% of salary (metro) or 40% (non-metro), or rent paid minus 10% of salary. Requires rent receipts above ₹1 lakh/year.

Eligibility: Salaried individuals receiving HRA

Tax-free travel expenses for domestic travel. Covers air/rail/bus fare for employee and family. Claimable twice in a block of 4 years. Only travel fare, not hotel/food.

Eligibility: Salaried individuals

Flat deduction from salary income. No documentation needed. ₹50,000 under Old Regime, ₹75,000 under New Regime (FY 2025-26). Replaces transport and medical allowance.

Eligibility: Salaried individuals & pensioners

₹75,000 for 40%+ disability; ₹1,25,000 for 80%+ severe disability. Self-certification from government medical authority needed. Cannot claim both 80U and 80DD.

Eligibility: Resident individuals with disability

Pro Tip: Maximize Your Deductions

Combine 80C (₹1.5L) + 80CCD(1B) NPS (₹50K) + 80D (₹25K-₹1L) + 24(b) Home Loan (₹2L) + Standard Deduction (₹50K). Total potential deductions: up to ₹5.5 lakh+ which can significantly reduce your taxable income under the Old Regime.