Deductions Under ITA 2025 explained: this guide covers what Deductions Under ITA 2025 means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VI-A of the Income Tax Act 2025 provides a range of deductions from gross total income. Important: Most Chapter VI-A deductions are available only under the old/alternative regime. Under the default regime, only select deductions like employer NPS contribution (80CCD(2)) and interest on education loan (80E) are available.
Section 80C — Investment Deductions (Max Rs. 1.5 Lakh)
Available only under old regime. Eligible instruments:
- ELSS (Equity Linked Savings Scheme) — 3-year lock-in
- PPF (Public Provident Fund)
- EPF (Employee Provident Fund — employee contribution)
- Life insurance premium
- NSC (National Savings Certificate)
- 5-year bank/post office fixed deposit
- Home loan principal repayment
- Children's tuition fees (up to 2 children)
- NPS contribution (Tier 1 — for 80CCD(1))
- Sukanya Samriddhi Account
Section 80CCD(1B) — Additional NPS Deduction
Additional Rs. 50,000 deduction for voluntary NPS Tier-1 contribution, over and above 80C limit of Rs. 1.5 lakh. Available under old regime. Total 80C + 80CCD(1B) = Rs. 2 lakh.
Section 80CCD(2) — Employer NPS Contribution
Available in both default and old regime. Employer contribution to NPS is deductible up to 14% of salary for government employees and 10% for others. No cap in rupee terms (subject to 14%/10%).
Section 80D — Health Insurance Premium
| Category | Maximum Deduction |
|---|---|
| Self, spouse, children (below 60 years) | Rs. 25,000 |
| Self or parents (60 years+) | Rs. 50,000 |
| Parents below 60 years | Rs. 25,000 |
| Max combined (if all senior citizens) | Rs. 1,00,000 |
Section 80E — Education Loan Interest
Available in default regime. Full interest deduction on education loan (no ceiling) for up to 8 consecutive Tax Years from the year repayment begins. Applies to loans for higher education of self, spouse, children, or student for whom you are legal guardian.
Section 80G — Donations
Donations to approved institutions deductible at 100% or 50% depending on the institution type. Maximum 10% of adjusted gross total income applies for most non-government institutions.
Section 80TTA / 80TTB — Savings Interest
- 80TTA: Rs. 10,000 deduction on savings account interest (individuals below 60)
- 80TTB: Rs. 50,000 deduction on all interest income for senior citizens (60+) — FD, RD, savings account
Section 80U — Disability
Fixed deduction of Rs. 75,000 (disability) or Rs. 1,25,000 (severe disability — 80%+ disability) for the person with disability. Requires certificate from notified medical authority. Available under old regime.
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