Section 80 Deductions (80C to 80U) for FY 2024-25

Section 80 Deductions (80C to 80U) for FY 2024-25. The Income Tax Act provides taxpayers with several opportunities to reduce their tax liabilities through deductions under Chapter VI-A. These provisions, ranging from Section 80C to 80U, allow eligible individuals and Hindu Undivided Families (HUFs) to deduct specific investments, expenditures, and contributions from their total taxable income. Among these, Deductions on Section 80C, 80CCC, 80CCD & 80D are the most popular. However, there are many other lesser-known deductions that taxpayers can benefit from if they plan wisely. This article elaborates each Section 80 Deduction for FY 2024-25 (AY 2025-26) in detail to help you save more on taxes.
Section 80 Deduction under Chapter VI-A
Chapter VI-A of the Income Tax Act includes provisions from Section 80C to Section 80U, aimed at reducing your net taxable income by encouraging investments, savings, and specific expenses. A taxpayer, whether salaried, self-employed, or retired, can claim eligible deductions by filing their Income Tax Return (ITR). These deductions are not available under the new tax regime, except for selected ones like Section 80CCD(2) and 80JJAA.
Section 80C Deduction – Investments and Expenses
Section 80C is the most widely used provision under Chapter VI-A, allowing a maximum deduction of up to Rs.1,50,000 per financial year. This deduction can be claimed by individuals and HUFs for certain specified investments or expenses.
Some common investments under Section 80C include:

Life Insurance Premiums (for self, spouse, or children)

Public Provident Fund (PPF)

Employee Provident Fund (EPF)

Equity Linked Savings Scheme (ELSS)

National Savings Certificate (NSC)

5-Year Fixed Deposits (FDs)

Sukanya Samriddhi Yojana (SSY)

Tuition fees for up to two children

Home loan principal repayment

This section promotes disciplined saving habits and also covers key life goals like retirement planning, child education, and home ownership.
Section 80CCC – Pension Fund Contributions
Section 80CCC allows deductions for premiums paid towards annuity plans of Life Insurance Corporation (LIC) or any other insurer. These annuity plans must provide a pension or periodic payment after retirement. The limit for this section is part of the overall cap of Rs.1,50,000 under Section 80C, 80CCC, and 80CCD(1) combined.
Section 80CCD – National Pension Scheme (NPS)
There are three sub-sections under Section 80CCD:
Section 80CCD(1)
This allows deduction for contributions made by individuals towards the National Pension Scheme (NPS) or Atal Pension Yojana (APY). For salaried individuals, the maximum deduction is 10% of the salary (Basic + DA), and for self-employed individuals, it is 20% of gross total income. This also comes under the Rs.1.5 lakh cap with 80C and 80CCC.
Section 80CCD(1B)
This is an additional deduction of up to Rs.50,000 for NPS contributions, over and above the Rs.1.5 lakh limit. This makes NPS a powerful tool for long-term retirement planning and tax savings.
Section 80CCD(2)
This applies to employer contributions to NPS. In the case of government employees, the limit is 14% of salary, and for others, it is 10%. This deduction is not part of the Rs.1.5 lakh limit and is allowed under both old and new tax regimes.
Section 80D – Medical Insurance Premium
Under Section 80D, you can claim a deduction for the medical insurance premium paid for yourself, your family, and your parents.
The deduction limits are:

Rs.25,000 for self and family (below 60 years)

Rs.50,000 for senior citizen parents

Rs.50,000 for senior citizen taxpayer and family

Additional Rs.5,000 within the above limits for preventive health checkups

If the senior citizen is uninsured, the deduction is available for medical expenses instead of insurance premium. Payments must be made in non-cash mode, except for preventive checkups.
Section 80DD – Disabled Dependent
This section offers a fixed deduction for the maintenance and medical treatment of a dependent with a disability.

For disability between 40%-79%: Rs.75,000

For disability 80% or above: Rs.1,25,000

The dependent can be a spouse, parent, sibling, or child in the case of individuals or any member in case of HUFs. A medical certificate is mandatory.
Section 80DDB – Treatment of Specified Diseases
Section 80DDB allows deductions for expenses incurred on medical treatment of specific ailments such as cancer, chronic renal failure, Parkinson’s disease, etc. The maximum deduction depends on the age of the patient:

Up to Rs.40,000 for individuals below 60 years

Up to Rs.1,00,000 for senior citizens

The deduction is available for self or dependents. A prescription from a specialist is needed.
Section 80E – Education Loan Interest
This section allows a deduction for interest paid on loans taken for higher education for yourself, your spouse, children, or a student you’re a legal guardian of.
The deduction:

Has no upper limit

Is available for 8 consecutive assessment years starting from the year of first repayment

This is particularly useful for students and parents funding higher education.
Section 80EE – First-Time Homeowners
This deduction is available to first-time home buyers who meet the conditions below:

Loan sanctioned between April 1, 2016, and March 31, 2017

Value of house not exceeding Rs.50 lakh

Loan amount not exceeding Rs.35 lakh

A maximum deduction of Rs.50,000 is allowed on the interest paid, in addition to Rs.2 lakh available under Section 24.
Section 80EEA – Affordable Housing Loan
Applicable for loans sanctioned between April 1, 2019, and March 31, 2022, this section allows an additional deduction of Rs.1.5 lakh on interest paid for the purchase of affordable housing. The stamp duty value of the house should not exceed Rs.45 lakh.
Section 80EEB – Electric Vehicle Loan
To promote eco-friendly transport, a deduction of up to Rs.1.5 lakh is allowed on the interest paid for loans taken to purchase electric vehicles. The loan must be sanctioned between April 1, 2019, and March 31, 2023.
Section 80G – Donations
Section 80G allows deduction for donations made to approved charitable institutions. The deduction may be 100% or 50% with or without restriction depending on the institution.
For example:

Prime Minister’s National Relief Fund: 100% without limit

Jawaharlal Nehru Memorial Fund: 50% without limit

Other approved funds: 50% with a cap of 10% of Adjusted Gross Total Income

Cash donations above Rs.2,000 are not eligible.
Section 80GG – Rent Paid
This is for those who do not receive HRA. The least of the following is allowed as a deduction:

Rs.5,000 per month

25% of adjusted total income

Actual rent minus 10% of adjusted income

Form 10BA must be filed to claim this deduction.
Section 80GGA – Donations for Scientific Research & Rural Development
All taxpayers (except those with income from business/profession) can claim 100% deduction for donations made to institutions involved in rural development or scientific research. Cash donations above Rs.10,000 are not eligible.
Section 80GGB – Company Donations to Political Parties
Indian companies can claim 100% deduction for donations made to political parties or electoral trusts. However, contributions must be made through non-cash modes.
Section 80GGC – Individual Donations to Political Parties
Individuals, HUFs, and firms (excluding companies) can claim a 100% deduction for contributions made to political parties. Again, donations made in cash are not allowed.
Section 80RRB – Royalty from Patents
Resident individuals who receive royalty income for patents registered under the Patents Act, 1970 can claim a deduction of up to Rs.3 lakh or the actual royalty income, whichever is lower.
Section 80QQB – Royalty from Books
Indian authors (excluding journals, guides, or textbooks) can claim deductions for royalty income from books. The maximum deduction is Rs.3 lakh or 15% of the total value of books sold, whichever is lower.
Section 80TTA – Interest on Savings Account
Individuals and HUFs (excluding senior citizens) can claim a deduction of up to Rs.10,000 for interest income from savings accounts held in banks, post offices, or cooperative societies.
Section 80TTB – Senior Citizens Interest Income
Senior citizens can claim a deduction of up to Rs.50,000 on interest income from savings or fixed deposits in banks, post offices, or cooperative banks. If this deduction is claimed, Section 80TTA cannot be availed.
Section 80U – Disabled Individuals
This section allows a fixed deduction for individuals with disabilities.

Disability between 40%-79%: Rs.75,000

Disability of 80% or more: Rs.1,25,000

A medical certificate from a government-approved doctor is mandatory. This deduction is over and above medical expense deductions under other sections.
Conclusion
The complete scope of Income Tax Deductions (80C to 80U) for FY 2024-25 empowers taxpayers to make informed financial decisions. Whether it’s planning for retirement through NPS, saving for your child’s education, or claiming relief for medical expenses, each Section 80 Deduction has the potential to significantly reduce your tax liability.
To ensure that no eligible deduction is missed and that you comply with all documentary requirements, consult an expert from Compliance Calendar LLP through email info@ccoffice.in or Call/Whatsapp at +91 9988424211. With timely planning and strategic investments, you can fully leverage Deductions on Section 80C, 80CCC, 80CCD & 80D and much more to maximize your income tax savings.
FAQs
Q1. What is Section 80 Deduction under the Income Tax Act?
Ans. Section 80 Deduction refers to a series of tax-saving provisions under Chapter VI-A of the Income Tax Act, 1961. It includes deductions from Section 80C to Section 80U that allow taxpayers to reduce their taxable income by investing in specific instruments, making eligible payments, or contributing to welfare schemes.
Q2. How much can I claim under Section 80C for FY 2024-25?
Ans. Under Section 80C, an individual or HUF can claim up to Rs.1,50,000 as a deduction for investments or expenses like LIC premium, PPF, EPF, ELSS, tuition fees, and home loan principal repayment. This is one of the most common deductions on Section 80C availed by salaried taxpayers.
Q3. Can I claim both Section 80C and 80CCD(1B) deductions in the same year?
Ans. Yes, you can claim both deductions. Section 80C allows up to Rs.1.5 lakh, and Section 80CCD(1B) offers an additional Rs.50,000 for NPS contributions. Together, they can help you save tax on up to Rs.2 lakh in a financial year.
Q4. Who is eligible to claim deductions under Section 80D?
Ans. Section 80D allows individuals and HUFs to claim deductions for medical insurance premiums and preventive health check-ups. The deduction ranges from Rs.25,000 to Rs.1,00,000 depending on the age of the insured and whether parents are included.
Q5. Are deductions under Section 80C available in the new tax regime?
Ans. No, most Section 80C deductions are not available under the new tax regime. However, a few deductions like 80CCD(2) (employer’s NPS contribution) are still allowed. Taxpayers need to evaluate both regimes before choosing.
Q6. Can I claim tax benefits on interest paid on education loans?
Ans. Yes, under Section 80E, you can claim a deduction on interest paid towards education loans for higher studies. There is no cap on the amount, and the benefit is available for 8 assessment years from the year repayment begins.
Q7. What is the difference between Section 80TTA and 80TTB?
Ans. Section 80TTA provides a deduction of up to Rs.10,000 for interest on savings accounts for individuals and HUFs (excluding senior citizens). Section 80TTB offers a higher limit of Rs.50,000 but is applicable only to resident senior citizens for all types of deposit interest.
Q8. Can I claim both Section 80EE and Section 24 for interest on home loans?
Ans. Yes, if you meet the conditions of Section 80EE, you can claim an additional Rs.50,000 over the Rs.2 lakh deduction allowed under Section 24 for interest paid on a home loan. This benefit is meant for first-time home buyers.

The Income Tax Act provides taxpayers with several opportunities to reduce their tax liabilities through deductions under Chapter VI-A. These provisions, ranging from Section 80C to 80U, allow eligible individuals and Hindu Undivided Families (HUFs) to deduct specific investments, expenditures, and contributions from their total taxable income. Among these, Deductions on Section 80C, 80CCC, 80CCD & 80D are the most popular. However, there are many other lesser-known deductions that taxpayers can benefit from if they plan wisely. This article elaborates each Section 80 Deduction for FY 2024-25 (AY 2025-26) in detail to help you save more on taxes.

Section 80 Deduction under Chapter VI-A

Chapter VI-A of the Income Tax Act includes provisions from Section 80C to Section 80U, aimed at reducing your net taxable income by encouraging investments, savings, and specific expenses. A taxpayer, whether salaried, self-employed, or retired, can claim eligible deductions by filing their Income Tax Return (ITR). These deductions are not available under the new tax regime, except for selected ones like Section 80CCD(2) and 80JJAA.

Section 80C Deduction – Investments and Expenses

Section 80C is the most widely used provision under Chapter VI-A, allowing a maximum deduction of up to Rs.1,50,000 per financial year. This deduction can be claimed by individuals and HUFs for certain specified investments or expenses.

Some common investments under Section 80C include:

Life Insurance Premiums (for self, spouse, or children)
Public Provident Fund (PPF)
Employee Provident Fund (EPF)
Equity Linked Savings Scheme (ELSS)
National Savings Certificate (NSC)
5-Year Fixed Deposits (FDs)
Sukanya Samriddhi Yojana (SSY)
Tuition fees for up to two children
Home loan principal repayment

This section promotes disciplined saving habits and also covers key life goals like retirement planning, child education, and home ownership.

Section 80CCC – Pension Fund Contributions

Section 80CCC allows deductions for premiums paid towards annuity plans of Life Insurance Corporation (LIC) or any other insurer. These annuity plans must provide a pension or periodic payment after retirement. The limit for this section is part of the overall cap of Rs.1,50,000 under Section 80C, 80CCC, and 80CCD(1) combined.

Section 80CCD – National Pension Scheme (NPS)

There are three sub-sections under Section 80CCD:

Section 80CCD(1)

This allows deduction for contributions made by individuals towards the National Pension Scheme (NPS) or Atal Pension Yojana (APY). For salaried individuals, the maximum deduction is 10% of the salary (Basic + DA), and for self-employed individuals, it is 20% of gross total income. This also comes under the Rs.1.5 lakh cap with 80C and 80CCC.

Section 80CCD(1B)

This is an additional deduction of up to Rs.50,000 for NPS contributions, over and above the Rs.1.5 lakh limit. This makes NPS a powerful tool for long-term retirement planning and tax savings.

Section 80CCD(2)

This applies to employer contributions to NPS. In the case of government employees, the limit is 14% of salary, and for others, it is 10%. This deduction is not part of the Rs.1.5 lakh limit and is allowed under both old and new tax regimes.

Section 80D – Medical Insurance Premium

Under Section 80D, you can claim a deduction for the medical insurance premium paid for yourself, your family, and your parents.

The deduction limits are:

Rs.25,000 for self and family (below 60 years)
Rs.50,000 for senior citizen parents
Rs.50,000 for senior citizen taxpayer and family
Additional Rs.5,000 within the above limits for preventive health checkups

If the senior citizen is uninsured, the deduction is available for medical expenses instead of insurance premium. Payments must be made in non-cash mode, except for preventive checkups.

Section 80DD – Disabled Dependent

This section offers a fixed deduction for the maintenance and medical treatment of a dependent with a disability.

For disability between 40%-79%: Rs.75,000
For disability 80% or above: Rs.1,25,000

The dependent can be a spouse, parent, sibling, or child in the case of individuals or any member in case of HUFs. A medical certificate is mandatory.

Section 80DDB – Treatment of Specified Diseases

Section 80DDB allows deductions for expenses incurred on medical treatment of specific ailments such as cancer, chronic renal failure, Parkinson’s disease, etc. The maximum deduction depends on the age of the patient:

Up to Rs.40,000 for individuals below 60 years
Up to Rs.1,00,000 for senior citizens

The deduction is available for self or dependents. A prescription from a specialist is needed.

Section 80E – Education Loan Interest

This section allows a deduction for interest paid on loans taken for higher education for yourself, your spouse, children, or a student you’re a legal guardian of.

The deduction:

Has no upper limit
Is available for 8 consecutive assessment years starting from the year of first repayment

This is particularly useful for students and parents funding higher education.

Section 80EE – First-Time Homeowners

This deduction is available to first-time home buyers who meet the conditions below:

Loan sanctioned between April 1, 2016, and March 31, 2017
Value of house not exceeding Rs.50 lakh
Loan amount not exceeding Rs.35 lakh

A maximum deduction of Rs.50,000 is allowed on the interest paid, in addition to Rs.2 lakh available under Section 24.

Section 80EEA – Affordable Housing Loan

Applicable for loans sanctioned between April 1, 2019, and March 31, 2022, this section allows an additional deduction of Rs.1.5 lakh on interest paid for the purchase of affordable housing. The stamp duty value of the house should not exceed Rs.45 lakh.

Section 80EEB – Electric Vehicle Loan

To promote eco-friendly transport, a deduction of up to Rs.1.5 lakh is allowed on the interest paid for loans taken to purchase electric vehicles. The loan must be sanctioned between April 1, 2019, and March 31, 2023.

Section 80G – Donations

Section 80G allows deduction for donations made to approved charitable institutions. The deduction may be 100% or 50% with or without restriction depending on the institution.

For example:

Prime Minister’s National Relief Fund: 100% without limit
Jawaharlal Nehru Memorial Fund: 50% without limit
Other approved funds: 50% with a cap of 10% of Adjusted Gross Total Income

Cash donations above Rs.2,000 are not eligible.

Section 80GG – Rent Paid

This is for those who do not receive HRA. The least of the following is allowed as a deduction:

Rs.5,000 per month
25% of adjusted total income
Actual rent minus 10% of adjusted income

Form 10BA must be filed to claim this deduction.

Section 80GGA – Donations for Scientific Research & Rural Development

All taxpayers (except those with income from business/profession) can claim 100% deduction for donations made to institutions involved in rural development or scientific research. Cash donations above Rs.10,000 are not eligible.

Section 80GGB – Company Donations to Political Parties

Indian companies can claim 100% deduction for donations made to political parties or electoral trusts. However, contributions must be made through non-cash modes.

Section 80GGC – Individual Donations to Political Parties

Individuals, HUFs, and firms (excluding companies) can claim a 100% deduction for contributions made to political parties. Again, donations made in cash are not allowed.

Section 80RRB – Royalty from Patents

Resident individuals who receive royalty income for patents registered under the Patents Act, 1970 can claim a deduction of up to Rs.3 lakh or the actual royalty income, whichever is lower.

Section 80QQB – Royalty from Books

Indian authors (excluding journals, guides, or textbooks) can claim deductions for royalty income from books. The maximum deduction is Rs.3 lakh or 15% of the total value of books sold, whichever is lower.

Section 80TTA – Interest on Savings Account

Individuals and HUFs (excluding senior citizens) can claim a deduction of up to Rs.10,000 for interest income from savings accounts held in banks, post offices, or cooperative societies.

Section 80TTB – Senior Citizens Interest Income

Senior citizens can claim a deduction of up to Rs.50,000 on interest income from savings or fixed deposits in banks, post offices, or cooperative banks. If this deduction is claimed, Section 80TTA cannot be availed.

Section 80U – Disabled Individuals

This section allows a fixed deduction for individuals with disabilities.

Disability between 40%-79%: Rs.75,000
Disability of 80% or more: Rs.1,25,000

A medical certificate from a government-approved doctor is mandatory. This deduction is over and above medical expense deductions under other sections.

Conclusion

The complete scope of Income Tax Deductions (80C to 80U) for FY 2024-25 empowers taxpayers to make informed financial decisions. Whether it’s planning for retirement through NPS, saving for your child’s education, or claiming relief for medical expenses, each Section 80 Deduction has the potential to significantly reduce your tax liability.

To ensure that no eligible deduction is missed and that you comply with all documentary requirements, consult an expert from Compliance Calendar LLP through email info@ccoffice.in or Call/Whatsapp at +91 9988424211. With timely planning and strategic investments, you can fully leverage Deductions on Section 80C, 80CCC, 80CCD & 80D and much more to maximize your income tax savings.

FAQs

Q1. What is Section 80 Deduction under the Income Tax Act?

Ans. Section 80 Deduction refers to a series of tax-saving provisions under Chapter VI-A of the Income Tax Act, 1961. It includes deductions from Section 80C to Section 80U that allow taxpayers to reduce their taxable income by investing in specific instruments, making eligible payments, or contributing to welfare schemes.

Q2. How much can I claim under Section 80C for FY 2024-25?

Ans. Under Section 80C, an individual or HUF can claim up to Rs.1,50,000 as a deduction for investments or expenses like LIC premium, PPF, EPF, ELSS, tuition fees, and home loan principal repayment. This is one of the most common deductions on Section 80C availed by salaried taxpayers.

Q3. Can I claim both Section 80C and 80CCD(1B) deductions in the same year?

Ans. Yes, you can claim both deductions. Section 80C allows up to Rs.1.5 lakh, and Section 80CCD(1B) offers an additional Rs.50,000 for NPS contributions. Together, they can help you save tax on up to Rs.2 lakh in a financial year.

Q4. Who is eligible to claim deductions under Section 80D?

Ans. Section 80D allows individuals and HUFs to claim deductions for medical insurance premiums and preventive health check-ups. The deduction ranges from Rs.25,000 to Rs.1,00,000 depending on the age of the insured and whether parents are included.

Q5. Are deductions under Section 80C available in the new tax regime?

Ans. No, most Section 80C deductions are not available under the new tax regime. However, a few deductions like 80CCD(2) (employer’s NPS contribution) are still allowed. Taxpayers need to evaluate both regimes before choosing.

Q6. Can I claim tax benefits on interest paid on education loans?

Ans. Yes, under Section 80E, you can claim a deduction on interest paid towards education loans for higher studies. There is no cap on the amount, and the benefit is available for 8 assessment years from the year repayment begins.

Q7. What is the difference between Section 80TTA and 80TTB?

Ans. Section 80TTA provides a deduction of up to Rs.10,000 for interest on savings accounts for individuals and HUFs (excluding senior citizens). Section 80TTB offers a higher limit of Rs.50,000 but is applicable only to resident senior citizens for all types of deposit interest.

Q8. Can I claim both Section 80EE and Section 24 for interest on home loans?

Ans. Yes, if you meet the conditions of Section 80EE, you can claim an additional Rs.50,000 over the Rs.2 lakh deduction allowed under Section 24 for interest paid on a home loan. This benefit is meant for first-time home buyers.