🧾 Tax Planning 7 min read·Updated 1 July 2026
Income Tax Deductions in India: 80C, 80D and Everything Else
Deductions only apply under the old regime. They reduce taxable income before slabs are applied — often the difference between paying ₹1.5 lakh and ₹40,000 in tax.
Section 80C — the ₹1.5 lakh workhorse
- PPF, EPF (employee contribution), ELSS mutual funds, life insurance premium.
- 5-year tax-saving FDs, NSC, Sukanya Samriddhi.
- Principal repayment of a home loan.
- Tuition fees for up to two children.
Section 80D — health insurance
₹25,000 for self and family (₹50,000 if senior citizen). Additional ₹25,000/₹50,000 for parents. Preventive health check-up up to ₹5,000 within these limits.
Other useful deductions
- 80E: education loan interest — no upper limit, for 8 years.
- 80G: donations to approved charities — 50% or 100% depending on the organisation.
- 24(b): home loan interest — up to ₹2 lakh for self-occupied property.
- 80CCD(1B): additional ₹50,000 for NPS (over and above 80C).
Common mistakes
- Buying insurance just for tax — endowment policies rarely beat inflation.
- Missing the March 31 deadline for 80C investments.
Frequently asked questions
Can I claim 80C in the new regime?+
No. The new regime scraps most deductions, including 80C, 80D and HRA.
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