Tax Deductions and Exemptions

Jai Hind Friends!

Welcome to our website . Two types of tax systems have been arranged for you. In the new tax regime, the tax rate seems a bit lower, but there are no deductions or exemptions available. However, if you opt for the old tax regime, you can avail many deductions and exemptions.

In this post, we will be discussing the top 13 deductions and exemptions that may or may not be applicable to you. These deductions are available only under the old tax regime.

These deductions are generally applicable to almost everyone. If you take advantage of them, you can significantly reduce your tax burden.

In addition, we have created a new channel called “Tax Select,” where we discuss topics related to money and finance. In this post, we will also discuss income tax deductions and exemptions.

13 Top Tax Deductions:

1. Section 80C: You can avail up to ₹1.5 lakh in deductions here. This includes investments in schemes like ELSS, Public Provident Fund, Statutory Provident Fund, government funds, life insurance payments, home loan principal repayments, Sukanya Samriddhi Yojana, National Savings Certificates, and more. These expenses and investments can help you get deductions under this section.
2. Section 24: This section allows you to adjust any losses from home property income against other sources of income. If you have a self-occupied property and have taken a loan, you can claim up to ₹2 lakh for interest deductions on that loan.
3. Section 80GG: This section provides deductions for rent paid if you’re living away from home for work, but do not receive HRA. You can claim deductions of up to ₹2 lakh under this section based on your rent payments.
4. Section 80DD: This section provides deductions for expenses incurred for a disabled dependent. If you spend money on the care or maintenance of a disabled dependent, you can claim up to ₹1.25 lakh in deductions under this section.
5. Section 80CCD: There are three sub-sections here—Section 80CCD(1) for employee contribution, Section 80CCD(2) for employer contribution, and Section 80CCD(1B) for contributions to the National Pension Scheme (NPS). Contributions to NPS can provide a deduction of up to ₹50,000 under Section 80CCD(1B).
6. Section 80E: This section allows you to claim deductions on the interest paid on loans taken for higher education. There is no upper limit for the amount of interest you can claim as a deduction under this section.
7. Section 80D: Health is wealth! If you have medical insurance, you can claim up to ₹25,000 for yourself and your family (under 60 years of age), and ₹50,000 for senior citizens. If your parents are also senior citizens, you can claim additional deductions.
8. Section 80U: If you or any of your dependents are disabled, you can claim a deduction of ₹1.5 lakh under this section without any additional expenses.
9. Section 80G: Donations made to eligible charitable organizations are tax-deductible. Depending on the institution, you may get 50% or 100% deductions.
10. Section 80GGB: This section is specifically for donations made to political parties. If you donate to a registered political party, you can get a full deduction.
11. Section 10(10D): This section provides tax exemptions for maturity proceeds of life insurance policies, subject to certain conditions.
12. Section 80TTA: Interest earned on savings bank accounts can be claimed up to ₹10,000 under this section as a deduction from your total income.
13. Section 80GG: If you live in rented accommodation and do not receive HRA, this section offers tax relief based on your rent payments.

Make sure to file your returns before the due date to avail of these benefits. The due date for filing returns for the assessment year 2025 is 31st July 2025.

Thank you for reading this post. Stay tuned for more valuable posts!