Tax saving · 10 deductions

Every deduction, with worked examples.

80C, 80D, HRA, Section 24(b), NPS, 80E, 80G, 87A — what each section covers, the cap, who qualifies, common mistakes, and an example showing exactly what you save.

For salaried

5 sections

Section 80C

Old only

₹1.5L deduction on PPF, ELSS, life insurance & more

The most-used deduction in India. Invest or spend up to ₹1.5L on a list of approved instruments and reduce your taxable income by the same a…

Max deduction

₹1,50,000 per year

Section 80D

Old only

Health insurance premium deduction up to ₹1L

Deduction for health insurance premium paid for self, spouse, dependent children, and parents. Higher limit if any of the insured is a senio…

Max deduction

₹25,000

Section Section 10(13A)

Old only

How rent slashes your taxable salary

House Rent Allowance (HRA) received from employer is partially exempt if you actually pay rent. The exemption follows a three-way least-of f…

Max deduction

Least of: actual HRA / 50%

Section 80CCD(1B)

Old only

Extra ₹50,000 deduction for NPS contribution

Contribute up to ₹50,000 to NPS (Tier 1) and claim a deduction in addition to your ₹1.5L Section 80C cap. Effectively raises your total dedu…

Max deduction

₹50,000

Section 80CCD(2)

Both regimes

Employer NPS contribution deduction

Employer's contribution to your NPS Tier-1 account is deductible — up to 10% of your basic + DA (14% for central government employees). Avai…

Max deduction

10% of salary

For homeowners

2 sections

Section Section 24(b)

Both regimes

Home loan interest deduction up to ₹2L

Interest paid on a home loan is deductible from rental / salary income — up to ₹2L per year for a self-occupied property, with no upper limi…

Max deduction

₹2,00,000

Section 80EE / 80EEA

Old only

First-time home buyer extra interest deduction

First-time home buyers get an extra interest deduction on top of Section 24(b)'s ₹2L. 80EE applies to loans sanctioned in FY 2016-17 (₹50k e…

Max deduction

₹50,000

For parents

1 section

Section 80E

Old only

Education loan interest, no upper limit

Interest on an education loan for higher studies (yourself, spouse, children, or a student you're legal guardian of) is fully deductible — n…

Max deduction

Full interest paid

For donors

1 section

Section 80G

Old only

Donation deduction (50% or 100% based on charity)

Donations to approved charitable institutions, government relief funds, and registered NGOs are deductible. Deduction is 50% or 100% of dona…

Max deduction

50% or 100% of donation, sometimes capped at 10% of adjusted GTI

Low-income relief

1 section

Section Section 87A

Both regimes

Zero tax up to ₹7L (new regime) or ₹5L (old regime)

A direct rebate (not deduction) that wipes out tax for taxpayers with income up to ₹7,00,000 (new regime) or ₹5,00,000 (old regime). Effecti…

Max deduction

₹25,000

Confused which regime saves more for you?

Our CAs run a side-by-side old-vs-new regime comparison on your numbers — and tell you exactly which deductions are worth chasing this year.

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