ITR Filing: Claim These 80C to 80U Deductions to Save More in 2025

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.

Understanding Tax Deductions Under Chapter VI -A of  Income Tax Act

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.

Section Wise Breakdown

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:

• Employees Provident Fund (EPF)
• Public Provident Fund(PPF)
• National Savings Certificate (NSC)
• Unit Linked Insurance Plan (ULIP)
• Equity Linked Savings Scheme (ELSS)
• Sukanya Samriddhi Yojana (SSY)
• Senior Citizen Saving Scheme (SCSS)
• 5-Year Tax -Saving Fixed Deposits

Read More: Investments that Help You Save Income Tax Under Section 80C

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The expenses under section 80C  of the Act that qualify for tax deductions are:

• Life Insurance Policies: Premium paid for life insurance policies
• Tuition fees : Deductions can be claimed on tuition fees  for up to two children.
• Repayment on principal amount of home loan
• Stamp duty and Registration fees : Cost in relation to home purchase

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:

• Self/spouse or dependent children and parents are  below 60 years ->  maximum deduction Rs.25,000. Therefore,the total deduction will be Rs.50,000.

• Self/spouse or dependent children are below 60 years -> deduction Rs.25,000 and parents - 60 years or above - deduction will be Rs.50,000.

Therefore, the total deduction will be Rs.75,000.

• Self/spouse or dependent children are 60 years or above -> deduction Rs.50,000 and  parents- 60 years or older - deduction will also be Rs.50,000.

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:

• Section 80DD-Medical Treatment of a Dependent with Disability

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.

• Section 80DDB- Deduction for Specified Diseases

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.

• Section 80GG-House Rent Paid

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.

• Section 80GGA-Donation towards Research and Rural Development

Benefit is not available to individuals earning income from business or profession.Donations made in cash exceeding Rs.2000 are not permitted.

• Section 80GGB-Donation to Political Parties

This deduction is availed by Indian Companies only donated by them to any political party or electoral trusts.

• Section 80GGC-Donations by a Person to Political Parties

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

• Allows tax deductions on royalty income earned from the sale of books.
• Only Indian Authors are eligible, maximum limit -Rs.3,00,000

Deduction claimed should not exceed the income received.

• Royalty on literary, artistic and scientific books - qualify for tax benefits.

Royalties from textbooks, journals, diaries, etc- do not qualify for tax benefits.

6. Section 80RRB-Royalty on Patents

• The taxpayer must be an Indian resident and an individual patentee.
• Royalty income from a registered patent ,maximum limit Rs.3,00,000

7. Section 80TTA and Section 80TTB

• Section 80TTA - Individual and HUF below 60 years of age,  deduction of up to Rs.10,000 interest  earned from savings account in post office or co-operative banks
• Section 80TTB- Meant for senior citizens above 60 years of age or more , allows deduction up to Rs.50,000 on interest earned from savings account and fixed deposits.

8.Section 80U- Deduction for Disabled Individuals

• Resident Individuals  eligible for this claim.
• Should be certified by a medical authority or government doctor.
• Person with at least 40% disabilities deduction of  Rs.75,000 available.
• Severe disabilities deduction of  Rs.1,25,000 available.
• Autism,Mental Retardation, Blindness and other conditions  among the disabilities.

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Old Tax Regime /New Tax Regime

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.

Read More: Comparing Income Tax Deductions/Exemptions under the Old and New Regimes: 80C, 80D, LTA, HRA and More

The deductions which cover under the old tax regime are:

• Section 80C :EPF, PPF, NSC, ELSS, SSY, life insurance premium, tuition fees, home loan principal, etc.
• Section 80CCC, 80CCD(1), 80CCD(1B), 80CCD(2) -Pension schemes like NPS and Atal Pension Yogana
• Section 80D - Health Insurance Premium and Preventive health Check-ups
• Section 80DD and Section 80DDB -Medical Treatment of a Dependent with Disability and Specified Diseases
• Section 80E- Interest on Education Loan
• Section 80EE, 80EEA, 80EEB- Interest on home loan and electric vehicle
• Section 80G,80GGA, 80GGB, 80GGC- Donations to charitable institutions and political parties
• Section 80 GG - HRA not received on paying rent
• Section 80QQB, 80RRB- Royalty income from books and patents
• Section 80TTA and 80TTB -Interest from savings account and fixed deposits
• Section 80U-Disabled Individuals

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.

Read More: Income Tax Deductions Every Salaried Person Should Know: Here’s 2025 Update

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.

Conclusion

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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