Tax Deductions Beyond 80C FY 2025-26: 80D, 80CCD, 80TTB, 80G

Section 80C (Section 123 of the Income-tax Act, 2025) gets the headlines, but the old regime offers a wider deduction stack that can push taxable income down much further. Health insurance, NPS, senior-citizen interest income, donations and education loan interest all carry their own sections. This guide lists the key deductions beyond 80C for FY 2025-26 (AY 2026-27) and flags the few that also work in the new regime.

New law note: From 1 April 2026, the Income-tax Act, 2025 replaces the Income-tax Act, 1961. Returns for FY 2025-26 (AY 2026-27) are still filed under the 1961 Act with ITR-1 to ITR-7, so the section numbers used in this guide remain the ones for that filing. From tax year 2026-27, provisions carry new numbers (for example, Section 80C becomes Section 123 and Section 87A becomes Section 156) and key forms change (Form 16 becomes Form 130 and Form 26AS becomes Form 168), while proceedings for earlier years continue under the 1961 Act. See the complete mapping in our Income-tax Act 2025 section and form mapping guide.

Which Deductions Survive in the New Regime?

Under section 115BAC for FY 2025-26, almost all Chapter VI-A deductions are unavailable. Salaried taxpayers keep the ₹75,000 standard deduction and the employer NPS contribution benefit under section 80CCD(2). Everything else listed below applies only if you opt for the old regime, so weigh both regimes before locking a choice.

Section 80D (Section 126 of the Income-tax Act, 2025): Health Insurance Premiums

Preventive health check-up costs up to ₹5,000 fit within these overall limits. Premiums must be paid through non-cash modes for the deduction to stand. Family floater and separate parent policies are both claimable in the same year, with the parental limit sitting in addition to your own family’s limit.

NPS: Sections 80CCD(1), 80CCD(1B) and 80CCD(2)

Employees claim their own NPS contribution under 80CCD(1) within the overall ₹1.5 lakh ceiling shared with 80C. An extra ₹50,000 is available under 80CCD(1B) exclusively for NPS. Employer contributions get their own space under 80CCD(2), allowing 14% of salary in the new regime and 10% in the old regime for most employees.

This makes 80CCD(2) one of the very few deductions that survive the new regime for FY 2025-26. Check your salary structure for an employer NPS component before finalising the regime choice. Model the benefit with our NPS calculator.

Interest Income: 80TTA and 80TTB

Section 80TTA (merged into Section 153 of the Income-tax Act, 2025) gives taxpayers below 60 years a ₹10,000 deduction on savings account interest. Section 80TTB (merged into Section 153 of the Income-tax Act, 2025) raises this to ₹50,000 for senior citizens and widens coverage to deposit interest, including bank fixed deposits. Choose the section that matches your age band, since the two do not combine.

Section 80G (Section 133 of the Income-tax Act, 2025): Donations

Donations to approved funds and institutions earn either a 100% or a 50% deduction. Some donations carry no qualifying limit, while others are restricted to a qualifying limit of 10% of adjusted gross total income. Obtain the receipt with the institution’s registration details, and note that cash donations beyond a small threshold are excluded.

Section 80E (Section 129 of the Income-tax Act, 2025): Education Loan Interest

Interest on an education loan for higher studies qualifies for deduction with no upper limit. The benefit runs for up to 8 assessment years from the year repayment begins, or until the interest is fully repaid, whichever is earlier. Only the interest component qualifies; the principal has no separate deduction under this section.

Sections 80DD and 80U: Disability-Linked Deductions

Section 80DD covers maintenance and medical treatment expenses for a dependant with disability, while 80U applies when the taxpayer is disabled. A flat ₹75,000 applies where disability is 40% or more, rising to ₹1,25,000 in severe cases. These are flat deductions, so the actual expense level does not change the claim amount.

Home Loan Interest: Section 24(b) (Section 22 of the Income-tax Act, 2025)

Interest on a housing loan for a self-occupied property is deductible up to ₹2 lakh under section 24(b), outside the Chapter VI-A stack. Let-out property interest follows its own treatment, including a ₹2 lakh annual cap on the loss that can be set off against other heads. Our guide on income from house property explains the carry-forward and co-ownership rules.

Key Takeaways

• 80D: ₹25,000 for self and family, ₹50,000 where a senior citizen is covered, plus an additional limit for parents.
• NPS: ₹50,000 extra under 80CCD(1B); employer NPS under 80CCD(2) works in both regimes.
• 80TTA gives ₹10,000 on savings interest; 80TTB gives senior citizens ₹50,000 including FD interest.
• 80E has no monetary limit and runs up to 8 assessment years; 80G covers 50% or 100% donations.
• Only 80CCD(2) and the standard deduction survive the new regime for FY 2025-26.

Frequently Asked Questions

Can I claim 80D for my parents in the new regime?

No. 80D is not available under the new regime for FY 2025-26. It applies only when you opt for the old regime, and the parental limit sits in addition to your own family’s limit.

Is the ₹50,000 under 80CCD(1B) separate from 80C?

Yes. 80CCD(1B) sits outside the ₹1.5 lakh 80C ceiling and is exclusive to NPS. Together with 80CCD(1), an employee can shelter ₹2 lakh through NPS-led claims in the old regime.

Which is better for a senior citizen, 80TTA or 80TTB?

80TTB is clearly better. It allows ₹50,000 against ₹10,000 and covers fixed deposit interest as well. A taxpayer aged 60 or above claims 80TTB and not 80TTA.

How long can I claim 80E for one loan?

For up to 8 assessment years starting from the year the first repayment is made. Once the interest is fully repaid or the 8-year window ends, the deduction stops.

Do 80DD and 80U need expense proof?

The deduction is flat at ₹75,000 or ₹1,25,000 depending on the disability percentage, so keep the medical certificate establishing the condition. The actual expenditure level does not change the amount claimed.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.