Most people claim 80C and stop there. But there are deductions under 80D, 80E, 80G, 80TTA, 80U, and more that can reduce your taxable income significantly. This article covers each with eligibility conditions.
Most People Stop at 80C
Section 80C gets all the attention — and understandably so, with a ₹1.5 lakh deduction limit. But the Income Tax Act has many more deductions under the old regime that most people either don't know about or forget to claim. This guide covers 10 of them.
Note: These deductions apply only under the old tax regime. The new regime (FY 2025-26) does not allow most of these.1. Section 80C — The Well-Known One (₹1,50,000 limit)
Investments that qualify: EPF, PPF, ELSS mutual funds, NSC, 5-year bank FD, life insurance premium, principal repayment on home loan, Sukanya Samriddhi, SCSS, tuition fees for up to 2 children.
Tip: EPF deducted from your salary already counts. Many people invest in ELSS on top of EPF and exceed ₹1.5L without realizing only ₹1.5L is deductible.2. Section 80CCD(1B) — NPS Additional Deduction (₹50,000 additional)
Over and above the ₹1.5L 80C limit, you can claim an additional ₹50,000 for contributions to the National Pension System (NPS). This is the single most overlooked deduction among salaried individuals.
Effective benefit at 30% slab: ₹15,000 in tax savings on just ₹50,000 invested.3. Section 80D — Health Insurance Premium
- Self + family (below 60): up to ₹25,000
- Self + family (you are above 60): up to ₹50,000
- Parents (below 60): additional ₹25,000
- Parents (above 60): additional ₹50,000
Maximum possible deduction: ₹1,00,000 if you and your parents are all senior citizens.
Also: preventive health check-up up to ₹5,000 within the above limits (even cash payments qualify here).
4. Section 80E — Education Loan Interest
Interest paid on an education loan for higher studies — your own, your spouse, your children, or a student you are legal guardian of — is fully deductible. No upper limit. Available for 8 consecutive years from when repayment starts.
This is frequently missed by young professionals in their first jobs repaying education loans.
5. Section 80G — Donations to Approved Charities
Donations to approved charitable organizations are 50% or 100% deductible depending on the charity. Donations to PM CARES Fund, National Defence Fund, Prime Minister's National Relief Fund are 100% deductible without limit.
For other charities: 50% or 100% deductible, subject to 10% of adjusted gross total income limit.
6. Section 80TTA — Savings Bank Interest (₹10,000)
Interest earned on savings bank accounts (not FD) is deductible up to ₹10,000. Most people pay tax on this without knowing they can deduct it. Available for individuals below 60.
Senior citizens (above 60): Section 80TTB instead — covers both savings and FD interest up to ₹50,000.7. Section 80U — Deduction for Disability
If you have a certified disability (40%+ disability), you can claim ₹75,000 deduction. For severe disability (80%+ disability), ₹1,25,000.
No conditions on spending — it's a flat deduction based on the disability certificate.
8. Section 24(b) — Home Loan Interest (₹2,00,000)
If you have a home loan on a self-occupied property, interest paid up to ₹2,00,000 is deductible. This is separate from 80C (which covers principal repayment).
Let-out property: No limit on interest deduction, but the net loss from house property that can be set off against other income is capped at ₹2,00,000.9. HRA Exemption — If You Pay Rent
If your employer provides HRA allowance and you live in a rented house, the HRA exemption can be substantial. The exemption is the minimum of:
- Actual HRA received
- 50% of salary (metros: Delhi, Mumbai, Kolkata, Chennai) or 40% (other cities)
- Rent paid − 10% of salary
10. Standard Deduction — Don't Forget This One (₹50,000)
The ₹50,000 standard deduction available to all salaried employees under the old regime requires no proof and no investment. It's automatically deductible. Many employees forget to verify that their employer has applied it when computing TDS.
The Combined Impact
For a taxpayer earning ₹15 lakh with maximum deductions:
| Deduction | Amount |
|---|---|
| Standard Deduction | ₹50,000 |
| 80C | ₹1,50,000 |
| 80CCD(1B) — NPS | ₹50,000 |
| 80D — Health insurance | ₹50,000 |
| 24(b) — Home loan interest | ₹2,00,000 |
| HRA | ₹1,20,000 |
| Total Deductions | ₹6,20,000 |
| Taxable Income | ₹8,80,000 |
This reduces tax from roughly ₹2,12,500 (on ₹15L under old regime) to about ₹83,200 — a difference of nearly ₹1,30,000 in annual tax saved.
Conclusion
The deductions are in the Act — using them requires knowing they exist and maintaining the right documentation. Our tax team reviews client deductions every year and routinely finds ₹50,000–₹1,50,000 in missed claims. Book a consultation to review your tax position.
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