Top 10 tax deductions you should claim while filing your ITR for FY 2025

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Filing your income tax return (ITR) for FY 2024–25 (AY 2025-26)? If you’re opting for the old tax regime, make sure you’re claiming every deduction you’re eligible for. Section 80C may be the most well-known, but there are several other useful provisions — like 80D, 80E, and 24(b) — that can significantly reduce your taxable income.

Here are 10 smart inferences to help you file your return more easily and save taxes.

1. Section 80C – Expenses and investments of up to ₹1.5 lakh

It's the most sought-after deduction. You can claim a deduction of up to ₹1.5 lakh for payments towards the premium of life insurance, ELSS mutual funds, PPF, EPF, repayment of home loan principal, education charges of children, and Sukanya Samriddhi Yojana, amongst others.

2. Section 80D – Health insurance premium

You can claim your own, spouse's, and children's health insurance premium for a combined amount of ₹25,000, and ₹50,000 for parents who are senior citizens.

If parents and you both are more than 60 years old, the maximum limit increases to ₹1 lakh.

3. Section 24(b) – Home loan interest

If you have taken a home loan, you can claim interest paid for self-occupied house up to ₹2 lakh as deduction under this section. In addition to ₹1.5 lakh under 80C for repayment of principal.

4. Section 80E – Interest on education loan

There is no deduction limit under this section. You can deduct the whole interest on education loans for higher level studies for yourself, your wife/husband, children, or for a person whom you are a legal guardian of.

5. Section 80G – Donations made to charitable causes

Donations to qualifying charitable trusts are deductible either at 50% or 100% with or without limit, as specified by the trust. Keep the donation receipt with you and ensure the organisation has registered under Section 80G.

6. Section 80TTA/80TTB – Interest on savings account

Other individuals up to the age of 60 can claim ₹10,000 on interest earned on savings account under 80TTA. Senior citizens can claim ₹50,000 under 80TTB, including interest on savings and fixed deposit.

7. Section 80CCD(1B) – NPS contributions

In addition to the ₹1.5 lakh in 80C, you can also claim an additional ₹50,000 for contributions to the National Pension System (NPS), which will make you save more and retire comfortably.

8. Section 80DD – Expenses for disabled dependents

You can claim ₹75,000 if you care for a dependent with at least 40% disability, and ₹1.25 lakh for 80% or more disability. Expenses include medical treatment, rehabilitation, or insurance premiums.

9. Section 80U – For individuals with disability

If you are disabled, you may claim ₹75,000 (in case of 40% disability) or ₹1.25 lakh (in case of severe disability) as a flat deduction – no need to prove expenses incurred.

10. Section 10(14) – HRA and other allowances

Not a deduction but an exemption, House Rent Allowance (HRA) under Section 10(14) is available if you are paying rent. You can also claim exemptions on allowances like LTA, children's education, and hostel allowance.

Using these deductions wisely can reduce your tax liability heavily under the old regime. Ensure that you maintain receipts and documents before submitting your return, and seek the assistance of a tax consultant if needed.

FAQs

1. Can I claim both 80C and 80CCD(1B) in a single year?

Yes. 80CCD(1B) is over the ₹1.5 lakh limit of 80C. You can claim an additional ₹50,000 if you contribute to the NPS.

2. Can I claim 80D if I pay for my parents' health insurance?

Yes. You can claim ₹25,000 if the parents are below 60 years old and ₹50,000 if above 60 years. If you also buy the policy for yourself, you can claim both, up to ₹75,000 or even ₹1 lakh if all of them are senior citizen.

3. Can I claim 80E on an education loan taken by my brother/sister?

No. The Section 80E deduction is allowed only if you take the loan for yourself, your spouse, children, or an individual on whom you are a legal guardian.