To reduce tax liability while filing ITR (Income Tax Return) for Assessment 2025-26 here are some opportunities for the taxpayers by claiming deductions under section 80C to 80U. These tax deductions can ease the overall tax burden.
Chapter VI-A of the Income Tax Act,1961 provides several tax deduction options where the taxpayers need to pay only less taxes. These deductions under Sections 80C to 80U can be claimed by individuals or business entities to lower their tax liability.
1.Section 80C- Investments and Expenses That Qualify Under this Section
Section 80C , is the most common tax-saving provision for individuals. It helps the taxpayers to reduce their taxable income by up to Rs.1.5 lakh through investments and expenses.
Here are list of investments that qualify for deductions under section 80C of the Act:
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The expenses under section 80C of the Act that qualify for tax deductions are:
| Sections | Deduction for AY 2025-26 | Maximum Deduction |
| Section 80C | Investments made in EPF,PPF,NSC,ULIP,Tuition fees, SSY etc | Rs.1,50,000 |
| Section 80CCC | Investments in Pension Fund | Rs.1,50,000 |
| Section 80CCD(1) | Atal Pension Yogana or National Pension Scheme | For Employed- Its 10% of basic salary + DA For Self Employed- Its 20 % of Gross Total Income (GTI) |
| Section 80CCD(1B) | Atal Pension Yogana or National Pension Scheme (Additional Deduction) | Rs.50,000 |
| Section 80CCD(2) | Employer’s Contribution to NPS | For Govt. Employees :Its 14% of Basic Salary + DA Other Employees: Its 10% of Basic Salary +DA |
2.Section 80D- Health Insurance Premium
Under Section 80D of Income Tax Act deduction on medical insurance premium,preventive health check-up and senior citizens can be claimed.
Individuals Case:
Therefore, the total deduction will be Rs.75,000.
Therefore, total deduction will be Rs.1,00,000.
For payment made towards preventive health check-ups of self, spouse, dependent children, or dependent parents deduction up to Rs.5000 shall be allowed.
A Hindu Undivided Family (HUF) can claim a maximum deduction of Rs.25,000 for health insurance paid for any family member and if the insured family member is a senior citizen then the limit will increase to Rs.50,000.
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Section 80D is subdivided into two:
Normal Disability – 40% or more but less than 80% ->deduction of Rs.75,000
Severe Disability – 80% or more then the ->deduction of Rs.1,25,000.
Under this section the deduction is allowed for expenses incurred on medical treatment for those suffering from severe diseases. If the patient is a senior citizen then the maximum deduction limit is Rs.1,00,000 and for others the limit is Rs.40,000.
3. Section 80E- Deduction for Education Loans
This provision helps to realise that pursuing higher education will not become an additional tax burden. An individual can claim deduction on the interest paid on an education loan for himself/spouse or children or for a student for whom the taxpayer is the legal guardian.
| Sections | Deduction for AY 2025-26 | Maximum Deduction |
| Section 80EE | Home Loan | Rs.50,000 |
| Section 80EEA | First Time Home Buyers | Rs.1,50,000 |
| Section 80EEB | Electric Vehicle Loan | Rs.1,50,000 |
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4. Section 80G-Donations to Charitable Institutions
The deduction is available to all types of taxpayers ie., the individuals or firms or LLP or any other persons. Donations exceeding Rs.2000 must be made through non-cash modes to qualify for a deduction under this section and cash donations above this limit are not eligible for deduction.
On paying rent if the House Rent Allowance (HRA),a taxpayer can claim a deduction up to Rs.5,000 per month.The admissible deductions Rs.5,000 per month , 25% of the adjusted total Income.
Benefit is not available to individuals earning income from business or profession.Donations made in cash exceeding Rs.2000 are not permitted.
This deduction is availed by Indian Companies only donated by them to any political party or electoral trusts.
Allows individuals to claim a tax donated to political parties or electoral trusts.100% deduction can be availed on the amount donated.
5. Section 80QQB-Royalty Income of Authors
Deduction claimed should not exceed the income received.
Royalties from textbooks, journals, diaries, etc- do not qualify for tax benefits.
6. Section 80RRB-Royalty on Patents
7. Section 80TTA and Section 80TTB
8.Section 80U- Deduction for Disabled Individuals
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Choosing the right tax regime is important while filing ITR ie., whether to choose the old tax regime or new tax regime. Even though the new tax regime offers lower tax rates, most of the common deductions are not included in the new tax regime. The old tax regime gives more deductions and exemptions but it provides higher tax rates.
The deductions which cover under the old tax regime are:
NOTE: Among the various deductions listed,Section 80CCD(2) which covers Employer’s Contribution to NPS is also available under the new tax regime.
Salaried individuals and pensioners can claim a standard deduction from their taxable income, Rs.50,000 under the old tax regime and Rs.75,000 under the new tax regime.
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Choosing the right tax regime depends upon the structure of the income and the ability to choose between the deductions and exemptions.Seeking professional advice will be wise to make an informed decision based on investments and income.
Chapter VI-A of Income Tax Act provides several tax saving deduction options. Choosing the right option will ease your tax burden and secure your financial efficiency for long term benefits. To avoid notices and penalties file your ITR accurately.
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