Income Tax Deductions under Old Tax Regime (FY 2024–25 / AY 2025–26)

1. House Rent Allowance (HRA) – Section 10(13A)

If you live in rented accommodation and receive HRA from your employer, you can claim an exemption under Section 10(13A), limited to the least of actual HRA received, 50% of salary (for metro cities) or 40% (for non-metros), or the excess of rent paid over 10% of salary.

2. Leave Travel Allowance (LTA) – Section 10(5)

You can claim an exemption on travel expenses for domestic trips under Leave Travel Allowance twice in a block of four calendar years, provided you submit valid proof to your employer.

3. Standard Deduction – Section 16(ia)

A flat deduction of ₹50,000 is automatically allowed to all salaried individuals and pensioners, reducing the taxable portion of income without needing any documents.

4. Home Loan Interest – Section 24(b)

You can claim a deduction of up to ₹2,00,000 on the interest paid on a home loan for a self-occupied property, and there is no limit for a let-out property.

5. Investments Under Section 80C

You can claim a deduction of up to ₹1.5 lakh for specified investments and payments such as LIC premiums, PPF, EPF, ELSS, NSC, 5-year tax-saving FD, tuition fees for children, Sukanya Samriddhi Yojana, and repayment of the principal on a home loan.

6. Pension Plan Contributions – Section 80CCC

Contributions to approved pension funds, such as LIC’s annuity plans, qualify for deduction under Section 80CCC, but the total deduction under Section 80C, 80CCC, and 80CCD(1) is capped at ₹1.5 lakh.

7. NPS Employee Contribution – Section 80CCD(1)

You can claim a deduction for your contribution to the National Pension System (NPS) up to 10% of salary for salaried individuals or 20% of gross total income for the self-employed, within the ₹1.5 lakh 80C ceiling.

8. NPS Additional Contribution – Section 80CCD(1B)

You can claim an additional deduction of up to ₹50,000 for extra contributions made to the National Pension System, over and above the ₹1.5 lakh limit under Section 80C.

9. Medical Insurance Premium – Section 80D

You can claim a deduction of up to ₹25,000 for health insurance premiums paid for yourself and your family, and an additional ₹25,000 (or ₹50,000 if your parents are senior citizens) for premiums paid for your parents.

10. Maintenance of Disabled Dependent – Section 80DD

You can claim a deduction of ₹75,000 for taking care of a dependent with at least 40% disability, and ₹1,25,000 for severe disability (80% or more).

11. Treatment of Specified Illnesses – Section 80DDB

You can claim a deduction of up to ₹40,000 (or ₹1,00,000 for senior citizens) for medical expenses incurred on specified critical illnesses for yourself or a dependent.

12. Education Loan Interest – Section 80E

You can claim a deduction for the full amount of interest paid on a loan taken for higher education for up to eight financial years, without any upper limit.

13. Interest on Home Loan for First-Time Buyers – Section 80EE

First-time homebuyers can claim an additional deduction of up to ₹50,000 on the interest paid on home loans, subject to specific conditions.

14. Interest on Affordable Housing Loan – Section 80EEA

You can claim an additional deduction of ₹1.5 lakh on home loan interest if you have taken a loan for an affordable house and meet the eligibility conditions, and have not claimed benefit under Section 80EE.

15. Interest on Loan for Electric Vehicle – Section 80EEB

You can claim a deduction of up to ₹1.5 lakh on the interest paid on a loan taken for the purchase of an electric vehicle, subject to certain conditions.

16. Donations to Charitable Institutions – Section 80G

You can claim a deduction of 50% or 100% of the amount donated to eligible charitable institutions, depending on the nature of the organization and subject to certain limits.

17. Rent Paid Without HRA – Section 80GG

If you do not receive HRA, you can claim a deduction for rent paid up to ₹5,000 per month or 25% of total income or excess of rent paid over 10% of total income, whichever is least.

18. Donations for Scientific Research or Rural Development – Section 80GGA

You can claim a 100% deduction on donations made for scientific research or rural development, provided you do not have income from business or profession.

19. Donations to Political Parties – Section 80GGC

You can claim a 100% deduction on donations made to registered political parties or electoral trusts, provided the payment is made through non-cash modes.

20. Disability of the Taxpayer – Section 80U

If you are a person with a disability, you can claim a deduction of ₹75,000 for a disability of 40% or more, and ₹1,25,000 for a severe disability of 80% or more.