Income Tax Deductions in India: 80C, 80D, 80CCD(1B), 80TTA/TTB, 24(b) and What the New Regime Allows

India has two income tax regimes, and which one you choose decides which deductions you can use. The old regime has many deductions and exemptions with higher slab rates. The new regime has lower slab rates but allows very few deductions. This guide lists the main deductions, with the conditions, and helps you decide.

Which deductions apply to which regime?

Limits and slabs change with the annual Budget, so check the current figures. Use the tax slab comparison and the income tax calculator with your own numbers.

Section 80C: up to ₹1.5 lakh

A combined limit across these eligible items:

• EPF and VPF contributions, PPF deposits.
• ELSS mutual funds (3-year lock-in).
• Life insurance premiums, subject to conditions.
• 5-year tax-saving fixed deposits.
• National Savings Certificate and Sukanya Samriddhi Yojana. See our Sukanya guide.
• Principal repayment of a home loan and stamp duty on purchase.
• Tuition fees for up to two children.

Many salaried people fill most of the limit through EPF alone, so check before buying more products just for tax.

Section 80D: health insurance premiums

Premiums paid for health insurance for yourself, spouse and children, and separately for parents, qualify for deduction, with higher limits for senior citizens. Preventive health check-ups are included within a small sub-limit. See our health insurance claim guide. Payments must be made through non-cash modes, other than the check-up amount.

Section 80CCD(1B) and 80CCD(2): NPS

An additional deduction for NPS contributions above the 80C limit is available in the old regime. Employer contributions to NPS get a deduction in both regimes within a percentage of salary. See NPS explained.

Home loan, education loan and others

• Home loan interest (24(b)): up to ₹2 lakh for a self-occupied property in the old regime. See home loan tax benefits.
• Education loan interest (80E): the full interest paid for up to eight years, no upper limit, for a loan for you, your spouse or children.
• Savings account interest (80TTA): up to ₹10,000 for non-seniors, and up to ₹50,000 under 80TTB for senior citizens, in the old regime.
• Donations (80G): to approved institutions, with 50% or 100% deduction and sometimes a limit.
• Disability and medical treatment of dependants (80DD, 80DDB, 80U): fixed deductions under conditions.

Which regime is better for you?

As a rough guide, if your total deductions and exemptions, including HRA, 80C, 80D, NPS and home loan interest, are large, the old regime often wins. If you have few deductions, the new regime often saves tax with less paperwork. Run both calculations every year. For salaried people, you can switch each year, but business owners have restrictions on switching back.

A worked comparison

Take a salary of ₹12,00,000. In the old regime, with ₹1.5 lakh 80C, ₹25,000 80D, ₹50,000 NPS, ₹2 lakh home loan interest and the standard deduction, the taxable income falls sharply. Whether it beats the new regime depends on the slabs that year. Do not rely on a generic rule, and run the numbers.

Keep documents

Maintain proofs for every deduction: receipts, certificates and bank statements. They are needed when your employer asks for them, and in case of a tax notice. See how to handle a notice and how to file your ITR.

Tax rules change every year. Confirm the latest provisions on the Income Tax Department website or consult a qualified professional.

Planning your deductions during the year

Do not wait until March. Estimate your tax in April, list the deductions you will use anyway such as EPF, insurance premiums and home loan principal, then fill the gaps with products you actually need, such as a health policy or NPS if you want a retirement boost. Spread ELSS investments through SIPs rather than a last-minute lump sum. Submit your investment declaration to your employer so that TDS is calculated correctly, and keep proofs in a single folder. If you switch jobs, give your new employer your previous income details so tax is not over or under deducted.

Frequently asked questions

Which deductions are allowed in the new regime?

Very few, mainly the standard deduction and employer NPS contribution within limits.

What is the limit under 80C?

₹1.5 lakh a year in the old regime.

Can I claim 80D for parents?

Yes, separately from your own cover, with higher limits for senior citizens.

Is there a limit on education loan interest deduction?

No monetary limit, but it is available for up to eight years.

How do I choose between old and new regimes?

Compute tax under both with your actual deductions each year.

Do I need proofs for deductions?

Yes, keep receipts and certificates for each claim.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.