Paying income tax can feel like a burden — unless you know how to smartly claim deductions. The Indian Income Tax Act offers a range of deductions from Section 80C to 80U to help taxpayers legally reduce their taxable income.
Whether you are a salaried employee, freelancer, business owner, or someone with specific medical or educational expenses, you can save thousands of rupees by understanding and using these deductions effectively.
Let’s explore the top tax deductions under Section 80C to 80U you must claim in FY 2024–25 (AY 2025–26).
✅ 1. Section 80C – The Most Popular Tax-Saving Section (Max: ₹1.5 Lakh)
You can claim up to ₹1,50,000 deduction per year under this section by investing in or spending on:
🏦 Eligible Instruments:
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- Life Insurance Premiums (LIC)
- 5-Year Fixed Deposit (Tax-Saver FD)
- ELSS Mutual Funds
- National Savings Certificate (NSC)
- Sukanya Samriddhi Yojana (SSY)
- Children’s tuition fees
- Principal repayment on home loan
🧠 Example:
If your income is ₹7.5 lakh and you invest ₹1.5 lakh in ELSS and PPF, your taxable income reduces to ₹6 lakh.
✅ 2. Section 80CCC – Pension Funds (Part of 80C Limit)
This allows you to claim a deduction for premiums paid towards pension plans from:
- LIC
- Other insurers under approved annuity plans
👉 Note: The combined limit with 80C and 80CCD(1) is ₹1.5 lakh.
✅ 3. Section 80CCD(1) – NPS Contributions by You (Part of 80C Limit)
If you invest in the National Pension Scheme (NPS):
- Salaried: Up to 10% of salary (Basic + DA)
- Self-employed: Up to 20% of gross income
Included in ₹1.5 lakh limit of 80C.
✅ 4. Section 80CCD(1B) – Additional NPS Deduction (Extra ₹50,000)
This is over and above Section 80C.
- You can claim an extra ₹50,000 by investing in NPS voluntarily.
- This makes your total deduction up to ₹2 lakh/year.
✅ Ideal for young professionals planning for retirement.
✅ 5. Section 80D – Health Insurance Premiums
You can claim deductions on health insurance premiums paid for:
- Self, spouse, children – Up to ₹25,000
- Parents (below 60) – ₹25,000
- Senior citizen parents – ₹50,000
🧮 Max Deduction:
Up to ₹75,000 per year (if parents are senior citizens)
Also includes ₹5,000 for preventive health check-ups.
✅ 6. Section 80DD – Disabled Dependent Care
You can claim this if you’re taking care of a dependent with a disability.
Deduction Limits:
- Disability (≥40%): ₹75,000
- Severe disability (≥80%): ₹1,25,000
Covers:
- Medical treatment
- Rehabilitation
- LIC/pension policies for dependents
✅ 7. Section 80DDB – Treatment of Specified Diseases
If you or your dependent suffers from specific diseases (e.g. cancer, kidney failure, Parkinson’s), you can claim:
- Up to ₹40,000 (for non-senior citizens)
- Up to ₹1,00,000 (for senior citizens)
Make sure to keep a prescription from a specialist doctor.
✅ 8. Section 80E – Education Loan Interest
If you’ve taken an education loan for higher studies (in India or abroad):
- 100% interest paid is deductible
- No upper limit
- Available for up to 8 years from the year you start repaying
👩🎓 Applies to loans for yourself, spouse, children, or legal guardian dependents.
✅ 9. Section 80EE – First-Time Home Buyers (Old Scheme)
If you bought your first house under the following conditions:
- Loan sanctioned between April 1, 2016 – March 31, 2017
- Loan ≤ ₹35 lakh; Property value ≤ ₹50 lakh
You can claim up to ₹50,000 deduction on home loan interest per year.
✅ 10. Section 80EEA – Home Loan Interest (Affordable Housing)
For loans sanctioned between April 1, 2019, and March 31, 2022 under Pradhan Mantri Awas Yojana:
- Deduction up to ₹1.5 lakh on home loan interest
- Over and above Section 24(b)
✅ 11. Section 80EEB – Interest on Electric Vehicle Loans
If you bought an electric vehicle (EV) on loan:
- Deduction of up to ₹1.5 lakh on interest paid
- Loan must be sanctioned between April 1, 2019 – March 31, 2023
🚗 Supports green mobility and sustainable transport.
✅ 12. Section 80G – Donations to Charitable Institutions
If you’ve donated to approved NGOs, relief funds, or charitable trusts, you can claim:
- 50% or 100% of the donated amount (with or without limits)
Examples:
- PM CARES Fund (100% deduction without limit)
- NGOs like CRY, Akshaya Patra (50% deduction)
Always keep the receipt and PAN of the NGO.
✅ 13. Section 80GG – House Rent (If No HRA)
If you’re not receiving HRA but still paying rent, you can claim:
- Least of the following:
- ₹5,000/month (₹60,000/year)
- 25% of total income
- Rent paid – 10% of total income
Ideal for self-employed or employees without HRA.
✅ 14. Section 80GGA – Scientific or Rural Development Donation
For donations made to:
- Scientific research
- Rural development programs
- Government-approved institutions
✅ 100% deduction available.
✅ 15. Section 80GGC – Donation to Political Parties
If you donate to a registered political party or electoral trust, you can claim:
- 100% deduction
- Only via non-cash mode
🛑 Cash donations are not eligible.
✅ 16. Section 80U – Deduction for Self-Disability
If you are a person with a disability:
- Disability (≥40%): ₹75,000
- Severe disability (≥80%): ₹1,25,000
You don’t need a dependent like 80DD — this is for yourself.
📝 Summary Table: Major Tax Deductions (2025)
| Section | Deduction Type | Max Limit |
|---|---|---|
| 80C | Investments (PPF, ELSS, etc.) | ₹1.5 lakh |
| 80CCD(1B) | NPS (extra benefit) | ₹50,000 |
| 80D | Health Insurance | ₹75,000 |
| 80E | Education Loan Interest | No limit |
| 80EEA | Home Loan Interest (Affordable Home) | ₹1.5 lakh |
| 80EEB | EV Loan Interest | ₹1.5 lakh |
| 80G | Donations to NGOs/Govt. Funds | 50–100% |
| 80U | Disability (self) | ₹75k–₹1.25 lakh |
❓FAQs – Tax Deductions Under Section 80C to 80U
🔹 Q1: Can I claim deductions under both 80C and 80CCD(1B)?
Yes! 80C limit is ₹1.5 lakh, and 80CCD(1B) gives an additional ₹50,000 for NPS investments.
🔹 Q2: Can I claim both 80D and 80DD?
Yes, you can claim 80D for health insurance and 80DD if you’re supporting a dependent with disability.
🔹 Q3: Are these deductions available under the new tax regime?
No, most deductions (like 80C, 80D, etc.) are not allowed under the new regime, except for a few like 80CCD(2) and employer NPS contributions.
🔹 Q4: How to claim these deductions?
When filing your ITR, enter these deductions in the “Deductions” section with proof (receipts, documents).
📌 Final Words
Claiming tax deductions under Section 80C to 80U is the smartest way to legally reduce your tax bill and maximize savings.
Make sure to:
- Invest early
- Keep all receipts and proofs
- Choose the tax regime that allows deductions
- File your return before the deadline