Tax deductions that can lower your taxable income.
Learn how common tax deductions work, which expenses and investments may qualify, and why choosing the right tax regime can change the deductions available to you.
Eligible expenses
Common areas taxpayers review while planning deductions.
Applicable qualifying payments and investments are subject to the relevant conditions.
A deduction generally reduces taxable income. The actual tax impact depends on the applicable rate and other tax provisions.
Reduce taxable income with eligible deductions.
Tax deductions are amounts that can be reduced from income when the law permits the taxpayer to claim them. They are different from tax rebates. A deduction generally reduces the income on which tax is calculated, while a rebate can reduce the tax payable after the tax calculation.
Common deductions have historically included eligible investments under Section 80C, health insurance and certain medical expenses, specified NPS contributions, education-loan interest, eligible donations and interest income deductions. Availability depends on the applicable tax regime, taxpayer category, payment type and other conditions.
For AY 2026–27, the new regime is the default regime. Many Chapter VI-A deductions associated with the old regime are not available under the new regime, with specific exceptions prescribed by law. :contentReference[oaicite:1]{index=1}
The deductions taxpayers commonly review.
The following sections are commonly relevant when evaluating deductions under the old tax regime. The exact eligibility, limits and documentation requirements depend on the provision and your circumstances.
Investments & payments
Combined limit: ₹1.5 lakhEligible life insurance premiums, provident fund contributions, certain tuition fees, NSC, housing-loan principal and other qualifying payments can fall within the combined limit.
Health insurance
Medical insurance deductionEligible health insurance premiums and specified preventive health check-up expenses can qualify, subject to taxpayer age, family relationship and statutory limits.
NPS contributions
Retirement planningEligible contributions to the National Pension System can qualify under specific subsections, including the additional deduction available under 80CCD(1B) under the applicable regime.
Education loan interest
Interest componentInterest paid on an eligible education loan can qualify for deduction subject to the conditions prescribed under the applicable provision.
Eligible donations
Specified donationsDonations to qualifying funds and institutions may be eligible for deduction subject to the nature of donation, payment method and other statutory requirements.
Savings account interest
Specified interest incomeEligible individuals and HUFs can evaluate the deduction available for qualifying savings-account interest under the applicable provisions.
Senior citizen interest
Eligible interest incomeSenior citizens may have a separate deduction framework for qualifying interest income, subject to the applicable conditions and limits.
Specified disability expenses
Dependent-related expensesCertain taxpayers may claim a deduction for eligible expenditure relating to a dependent with a specified disability, subject to statutory conditions.
One of the most familiar tax-saving deduction sections.
Section 80C has traditionally been one of the most widely used deductions under the old tax regime. The combined deduction limit is ₹1.5 lakh for eligible payments and investments covered by Section 80C, 80CCC and 80CCD(1).
Depending on eligibility, taxpayers may consider items such as life insurance premiums, provident fund contributions, certain tuition fees, National Savings Certificate investments and principal repayment of an eligible housing loan. The payment or investment must meet the conditions prescribed by the relevant provision.
Section 80C, 80CCC and 80CCD(1) have a combined limit under the applicable old-regime framework.
NPS can add another layer to tax planning.
The National Pension System can be relevant for both retirement planning and tax planning. Section 80CCD covers specified NPS contributions, with 80CCD(1), 80CCD(1B) and 80CCD(2) applying in different circumstances.
Under the old-regime framework, an additional deduction of up to ₹50,000 is available under Section 80CCD(1B), separate from the combined 80C/80CCC/80CCD(1) limit, subject to the applicable conditions. Employer contributions are covered separately under Section 80CCD(2). :contentReference[oaicite:2]{index=2}
Additional NPS deduction
Section 80CCD(1B) provides an additional deduction for eligible NPS contributions, subject to the prescribed conditions.
Tax deductions depend heavily on the regime you choose.
This is one of the most important points to understand before making tax-saving investments. Many familiar Chapter VI-A deductions available under the old regime cannot be claimed under the new regime, subject to the specific exceptions provided by law.
More deduction opportunities
The old regime generally provides access to a wider range of deductions and exemptions when the taxpayer meets the relevant conditions.
Fewer Chapter VI-A deductions
Under the new regime, most Chapter VI-A deductions are not available. Specific deductions prescribed by the tax law continue to apply.
Keep your deduction documents ready.
A tax deduction is useful only when it is actually eligible and properly supported. Before filing your return, collect the documents relevant to the deductions you intend to claim and verify the applicable limits and conditions.
From investment statements and insurance receipts to education-loan interest certificates and donation receipts, organised records make tax filing easier and reduce the risk of missing eligible information.
Collect statements and payment records for eligible investments.
Keep qualifying life and health insurance premium records.
Keep contribution details and PRAN-related information.
Obtain applicable education or housing-loan interest statements.
Retain eligible donation receipts and payment evidence.
Review interest income and relevant financial records.
Fresh tax articles & guides.
Common questions about tax deductions.
Here are concise answers to common questions taxpayers ask when planning deductions and comparing tax regimes.
A tax deduction is an amount that can be reduced from eligible income when permitted by tax law. It can reduce taxable income and therefore may reduce the tax payable, depending on the applicable tax rate and other provisions.
The combined deduction limit for Section 80C, 80CCC and 80CCD(1) is ₹1.5 lakh under the applicable old-regime framework. Eligible payments and investments must satisfy the prescribed conditions. :contentReference[oaicite:3]{index=3}
Generally, the familiar Chapter VI-A deductions such as 80C are not available under the new regime. Specific deductions, including eligible employer NPS contribution under 80CCD(2) and Agnipath-related contribution under 80CCH, are among the provisions that continue to apply. :contentReference[oaicite:4]{index=4}
Under the applicable old-regime framework, Section 80CCD(1B) allows an additional deduction of up to ₹50,000 for eligible NPS contributions, subject to the prescribed conditions. :contentReference[oaicite:5]{index=5}
Eligible health insurance premiums and specified preventive health check-up expenses may qualify under the applicable health-insurance deduction provisions, subject to age, relationship, payment method and statutory limits. :contentReference[oaicite:6]{index=6}
The old regime generally provides access to more deductions and exemptions, while the new regime has lower slab rates and fewer deductions. The better option depends on your income, eligible deductions and overall tax calculation.
Know your deductions. Make better tax decisions.
Tax deductions can be useful, but they should not be considered in isolation. Compare the complete tax calculation under the applicable regimes and verify the latest rules before claiming any deduction.
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