Section 80C to 80U Deductions – Updated List for FY 2024–25 (AY 2025–26)- Save Tax

Introduction

Saving tax is something every salaried person, businessman, or professional wants. The good news is – the Income Tax Act of India gives you various deductions from Section 80C to 80U to reduce your taxable income.

If you know how to use them smartly, you can save up to ₹1.5 lakh to ₹3 lakh or more in taxes legally.

This blog will explain all deductions under Section 80C to 80U in simple language, updated for FY 2024–25 (AY 2025–26).

What are Tax Deductions?

Tax deductions are amounts you can subtract from your total income before calculating your tax. It helps in reducing your tax liability.

For example:
If your income is ₹10 lakh and you claim deductions of ₹2.5 lakh, you will pay tax on ₹7.5 lakh only.

List of All Deductions from Section 80C to 80U

Section 80C – Most Common Deduction (Limit ₹1.5 lakh)

You can claim up to ₹1,50,000 by investing in:

LIC premium (for self, spouse, children)
PPF (Public Provident Fund)
EPF (Employee Provident Fund)
NSC (National Savings Certificate)
ELSS mutual funds (tax-saving)
Home loan principal repayment
Sukanya Samriddhi Yojana
Children’s tuition fees

Note: Combined limit with 80CCC and 80CCD(1) is ₹1.5 lakh.

Section 80CCC – Pension Plan Contributions

Deduction for amount paid towards certain pension funds (like LIC Jeevan Akshay).
Limit is included in ₹1.5 lakh under 80C.

Section 80CCD(1) – NPS Contributions (Self)

For contribution to National Pension Scheme (NPS).
Up to 10% of salary (for employees) or 20% of gross income (for self-employed).
Part of overall ₹1.5 lakh 80C cap.

Section 80CCD(1B) – Extra ₹50,000 for NPS

This is over and above ₹1.5 lakh limit.
If you invest in NPS, claim extra ₹50,000 deduction.

Smart Tip: Claim full ₹2 lakh deduction (₹1.5L under 80C + ₹50K under 80CCD(1B))

Section 80D – Medical Insurance Premium

Category	Limit
Self, Spouse, Children	₹25,000
Parents (Senior Citizens)	₹50,000
Own Self (Senior Citizen)	₹50,000

Also includes ₹5,000 for preventive health checkup.

Section 80DD – Dependent with Disability

Expenses for treatment, rehab or LIC policy for disabled dependent.

Deduction:

₹75,000 (40% disability)
₹1,25,000 (80% or more)

Section 80DDB – Medical Treatment for Specified Diseases

For treatment of diseases like cancer, kidney failure, Parkinson’s, etc.

Limit:

₹40,000 (below 60 years)
₹1,00,000 (senior citizen)

Requires prescription from specialist in govt hospital.

Section 80E – Interest on Education Loan

For higher education (self, spouse, children).
No limit on amount, but allowed for 8 years only.

Section 80EE – Interest on Home Loan (First-Time Buyers)

Extra deduction of ₹50,000 on interest.
Home loan up to ₹35 lakh and property value below ₹50 lakh.

Section 80EEA – Affordable Housing Loan Interest

Extra ₹1.5 lakh deduction on interest (over Section 24b).
For loans sanctioned before 31 March 2022 (if continuing).

Section 80EEB – Electric Vehicle Loan Interest

Deduction up to ₹1.5 lakh on EV loan interest.
Loan should be taken between FY 2019–20 to FY 2023–24.

Section 80G – Donations

Deduction for donation to charity, PM CARES, NGOs, temples, etc.
Some are 100% allowed, others 50% with/without limit.
Keep donation receipt with PAN of organization.

Section 80GG – Rent Paid (No HRA)

For self-employed or salaried person not getting HRA.

Max deduction: ₹60,000/year (₹5,000/month)
Formula based: least of 3 values (actual rent, 10% income, fixed cap)

Section 80GGC – Donation to Political Parties

Full deduction for donations to registered political parties.
Must be paid in non-cash mode.

Section 80TTA – Savings Account Interest

Deduction up to ₹10,000 on interest earned in savings bank account.
Only for non-senior citizens.

Section 80TTB – Interest for Senior Citizens

Up to ₹50,000 deduction on FD and savings account interest.
Only for people above 60 years.

Section 80U – Deduction for Disabled Individuals

Applicable for self-disability (unlike 80DD for dependent).