Deductions and exemptions · Tax Year 2025-26
All income tax deductions in one place
A single list of the main deductions an individual can claim, with limits, and which regime allows them. Covers 80C, 80D, NPS, loans, donations, savings interest, disability and more.
On this page
Most deductions in this list are available only in the old regime. The new regime keeps a short list: the standard deduction, the employer's NPS contribution (80CCD(2)), the family pension deduction and a few others. All amounts below are the limits in TaxCare's signed-off rules for the tax year 2025-26.
The rules for the tax year 2026-27 are provisional and carry forward these values. They have not been signed off against the Income-tax Act, 2025, which also renumbers sections. This guide uses the section numbers of the 1961 Act, which govern the tax year 2025-26.
Deductions from salary and pension
Deduction | Old regime | New regime |
|---|---|---|
Standard deduction | ₹50,000 | ₹75,000 |
Family pension | Lower of one-third and ₹15,000 | Lower of one-third and ₹25,000 |
Professional tax paid (16(iii)) | Allowed | Not allowed |
Entertainment allowance (government employees) | Lower of ₹5,000 and one-fifth of salary | Not allowed |
Chapter VI-A deductions (old regime unless stated)
Section | What it covers | Limit |
|---|---|---|
80C, 80CCC, 80CCD(1) | PPF, ELSS, insurance, pension fund, own NPS and other listed investments | ₹1,50,000 together |
80CCD(1B) | Own NPS, extra | ₹50,000 |
80CCD(2) | Employer's NPS contribution | 10% or 14% of salary; 14% in the new regime |
80CCH | Agniveer corpus fund | Up to 46.2% of salary (also in the new regime) |
80D | Health insurance | ₹25,000 self and family (₹50,000 if a senior citizen is covered); same again for parents; ₹5,000 of preventive check-up inside; ₹1,00,000 in total |
80DD | Dependant with disability | ₹75,000; ₹1,25,000 for severe disability |
80DDB | Specified disease treatment | ₹40,000; ₹1,00,000 for a senior citizen |
80E | Education loan interest | No cap |
80EE | Home loan interest | ₹50,000 |
80EEA | Home loan interest | ₹1,50,000 |
80EEB | Electric vehicle loan interest | ₹1,50,000 |
80G | Donations | Subject to qualifying limit of 10% of adjusted gross total income for some donations; cash donations above ₹2,000 are not allowed |
80GG | Rent paid, where no HRA | Lower of ₹60,000 a year and 25% of total income excluding long-term capital gains |
80GGA | Donations for scientific research or rural development | Cash above ₹2,000 not allowed |
80GGC | Donations to political parties | Not in cash; within gross total income |
80TTA | Savings account interest | ₹10,000 |
80TTB | Interest, for senior citizens | ₹50,000 |
80U | Self with disability | ₹75,000; ₹1,25,000 for severe disability |
Some of these have conditions that the table does not show. For example, 80GG is not allowed for a year in which you claim HRA, and it is the least of ₹5,000 a month, 25% of total income, and rent paid less 10% of total income. 80EE and 80EEA cannot both be claimed.
Which investments count for 80C
The 80C limit is shared by many instruments, and it is also shared with 80CCC and your own NPS contribution under 80CCD(1). The return asks for a document or policy number for each payment.
House property
- Interest on a self-occupied house: up to ₹2,00,000, old regime only.
- Loss from a let-out house: can be set off against other income up to ₹2,00,000 in the old regime. The new regime does not allow this set-off.
Capital gains exemptions are separate
Exemptions against capital gains work differently. For example, the long-term gain on listed shares is exempt up to ₹1,25,000 a year, and reinvesting in a house or in specified bonds can save tax within caps. See tax on selling shares.
Overall rules
- Gross total income cap. Chapter VI-A deductions cannot exceed your gross total income.
- Proof. Many sections need details in the return, such as a PRAN or policy number. The department rejects a claim whose schedule is missing or does not add up.
- Regime first. Pick your regime before you count deductions. See old vs new tax regime and new regime: what deductions are still allowed.
How TaxCare helps
TaxCare shows only the deductions that apply under each regime, caps each one at its limit, asks for the details the return needs, and compares both regimes so you can see whether claiming them is worth it. See section 80CCD(1B) for one example, and try the income tax calculator.
This guide gives general information and is not professional tax advice.
Questions on this topic
Which deductions are allowed in the new regime?
In TaxCare's rules: the standard deduction, the employer's NPS contribution under 80CCD(2), the family pension deduction, and a few salary items. Most Chapter VI-A deductions are not allowed.
Is there an overall cap on deductions?
The total of Chapter VI-A deductions cannot exceed your gross total income.
Do I need proofs for every deduction?
The return asks for details for many sections. Keep your proofs, because the department can ask for them.
Where can I see the list of deductions I qualify for?
TaxCare's filing flow shows the ones that apply to your data, and the calculator lets you try values.
Ready to file your ITR?
TaxCare fetches your AIS and TDS from the Income Tax portal, checks every figure and files the return that saves you the most. 25% off your first filing.