Deductions and exemptions · Tax Year 2025-26
How to claim deductions missed by your employer
If your employer left out a deduction when deducting TDS, you can still claim it in your return under the old regime. Learn which deductions you can add, the evidence you need and the windows for correcting a return.
On this page
Your employer works out TDS on salary only from the investment declaration you gave. If something was missed, you do not lose it. You can claim it in your own income tax return, if you use the old regime and you have the proof. Any tax the deduction saves comes back to you as a refund after you file and e-verify.
The figures and section numbers below are for the tax year 2025-26, under the 1961 Act. From the tax year 2026-27 the Income-tax Act, 2025 applies and renumbers the sections, and TaxCare's figures for that year are provisional.
Why this happens
Common reasons an employer's Form 16 shows too little deduction:
- You joined late and missed the declaration date.
- You paid a premium or invested after submitting proofs.
- You paid for things your employer does not know about, such as a parent's health insurance, an education loan or donations.
- You have income outside salary that your employer does not see, such as a second house.
The Form 16 is the employer's record. Your return is your claim.
What you can add, in the old regime
Deduction | What it covers | Limit (tax year 2025-26) |
|---|---|---|
80C, 80CCC, 80CCD(1) together | PF, PPF, life insurance, ELSS, tuition fees, home loan principal and more | ₹1,50,000 combined |
80CCD(1B) | Extra NPS contribution | ₹50,000 |
80D | Health insurance premium for self, family and parents | ₹25,000 (₹50,000 if a senior citizen is covered) for self and family, the same again for parents, ₹1,00,000 in all |
80E | Interest on an education loan | Interest paid, per the rules |
80G | Donations | See our guide on 80G |
80TTA | Interest on a savings account | ₹10,000 |
80TTB | Interest from deposits for senior citizens | ₹50,000 |
Home loan interest, self-occupied house | Loan taken for a house you live in | Up to ₹2,00,000 |
HRA | House rent allowance, if rent was paid | Lowest of three limbs |
What the new regime still allows
If you choose the new regime, almost all of these deductions go. The ones that remain are the standard deduction, the employer's NPS contribution under 80CCD(2) and the family pension deduction. If your employer missed a deduction in the new regime, it was most likely a standard-deduction or NPS issue, not 80C. Compare both before you file. See our guide on old vs new regime.
Proof you should keep
The return asks for details that stand behind a claim. Missing or inconsistent details can cause the return to be rejected as defective. Keep:
- 80C: policy numbers, account numbers or receipt numbers and the amounts.
- 80D: insurer name, policy number and premium.
- 80E, 80EE, 80EEA, 80EEB: the lender, loan account number, sanction date, amount, outstanding and interest paid.
- 80CCD(1B): your PRAN and the contribution.
- 80G: the donee's PAN, name, address, and the bank reference for non-cash gifts.
- Home loan: interest certificate and the property details.
Do not claim what you cannot prove. A deduction without papers can be reversed in a notice.
Step by step
- Add up what you actually paid in the tax year. Dates matter: a payment made after 31 March belongs to the next year.
- Check your Form 16 to see what the employer allowed.
- In the return, enter the deductions under the old regime.
- Compare the tax with the new regime.
- If the old regime is lower, file with the old regime. If you owe less than the TDS already deducted, the difference is your refund.
- E-verify within 30 days.
You must file on time to use the old regime
The old regime can be chosen only in a return filed by the due date. A belated return uses the new regime in TaxCare's rules. So do not wait if you want these deductions.
If you have already filed
You can correct a filed return with a revised return. For the tax year 2025-26:
- A revised return can be filed until 31-Mar-2027.
- After 31-Dec-2026, a fee applies: ₹5,000, or ₹1,000 if total income is ₹5,00,000 or less.
- The revised return must carry the original return's acknowledgement number.
- If the original return was belated, the old regime stays closed.
After the revised window closes, an updated return (ITR-U) exists, but it cannot be used to lower your tax or increase a refund. So a missed deduction cannot be added that way. This is why a missed claim should be fixed early.
Check before you add
- The deduction must belong to the tax year you are filing for.
- The 80C limit is shared across 80C, 80CCC and 80CCD(1). Do not count the same ₹1,50,000 twice if your employer already allowed some of it.
- HRA: if your employer already gave HRA exemption, do not claim it again.
- A claim for a parent's health insurance needs the premium to be paid by you.
How TaxCare helps
TaxCare shows what the employer's Form 16 and the portal data already include, lets you add the missing deductions with the details the return needs, and computes the tax under both regimes so you can see if the old regime now wins. If you have already filed, it tells you which correction route is open for the date and why. A Tax Expert can help where papers are unclear.
This guide gives general information and is not professional tax advice.
Questions on this topic
Can I claim a deduction my employer did not allow?
Yes, if you are in the old regime. The return is your own claim. Your employer only works out TDS from the declaration you gave.
Do I get the money back?
If the extra deduction reduces your tax below the TDS already deducted, the difference is a refund after you file and e-verify.
What if I already filed my return?
You can file a revised return within the window. For the tax year 2025-26, the revised return can be filed until 31-Mar-2027, with a fee after 31-Dec-2026.
Can I use an updated return (ITR-U) to add a deduction?
No. An updated return cannot reduce tax or increase a refund.
Do these deductions work in the new regime?
Mostly not. The new regime allows the standard deduction and the employer's NPS contribution, but not 80C, 80D and similar sections.
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.