Income Tax Deductions List Under Chapter VI-A: 80C to 80U Explained for FY 2025-26

Income Tax Deductions List Under Chapter VI-A: 80C to 80U Explained for FY 2025-26

Chapter VI-A is the backbone of individual tax planning in India — it is the set of provisions, running from Section 80C through Section 80U, that lets taxpayers reduce their gross total income before tax is calculated, provided they have made the right investments, incurred the right expenses, or fall into a specific eligible category. For years, this chapter was the default playbook for anyone trying to lower their tax bill.

That playbook changed significantly once the new tax regime became the default option, since most Chapter VI-A deductions are simply not available if you choose the new regime. This article walks through the key deductions under Chapter VI-A, what each one actually covers, how the umbrella caps work, and — critically — which ones still survive if you have opted into the new regime. Limits mentioned are indicative and should always be verified against the current provisions for the assessment year you are filing.

What Chapter VI-A Deductions Are

Chapter VI-A deductions are amounts you subtract from your Gross Total Income to arrive at your Total Taxable Income, before applying slab rates. They are distinct from exemptions (like HRA or LTA, which are excluded from salary computation itself) — deductions under this chapter are claimed after gross total income is computed, typically at the time of filing your return or through declarations made to your employer during the year.

These deductions reward specific behaviour: saving for retirement, buying health insurance, repaying education loans, donating to charity, or falling into categories like senior citizens or persons with disabilities that Parliament has chosen to support through the tax system.

Who Can Claim Chapter VI-A Deductions

Broadly, resident and non-resident individual taxpayers, and in some cases Hindu Undivided Families, can claim these deductions, though eligibility varies section by section. Some deductions (like 80C) are available to any individual or HUF; others (like 80CCD(2) for employer NPS contributions) require an employer-employee relationship; and some (like 80U) require the taxpayer themselves to have a specified disability.

Crucially, companies, partnership firms and LLPs generally cannot claim most Chapter VI-A deductions, since this chapter is primarily designed for individual taxpayers and HUFs, with a few sections extending to other categories.

Key Deductions: What Each Section Covers

Section 80C — The most widely used deduction, covering investments and payments such as life insurance premiums, Employee Provident Fund and Public Provident Fund contributions, Equity Linked Savings Scheme investments, principal repayment of home loans, tuition fees for up to two children, National Savings Certificates, tax-saving fixed deposits, and Sukanya Samriddhi Yojana contributions. This sits within an overall umbrella limit, commonly cited at ₹1.5 lakh, shared with 80CCC and 80CCD(1).

Section 80CCC — Deduction for contributions to specified pension funds offered by insurers, also falling within the same ₹1.5 lakh umbrella as 80C.

Section 80CCD(1), (1B) and (2) — Deductions for contributions to the National Pension System. 80CCD(1) sits within the 80C umbrella; 80CCD(1B) offers an additional deduction (commonly referenced around ₹50,000) outside that umbrella; and 80CCD(2), for employer contributions, sits entirely outside the 80C-family cap.

Section 80D — Deduction for health insurance premiums paid for self, spouse, dependent children, and parents, with a separate, higher sub-limit typically available for senior citizen parents. Preventive health check-up expenses are also included within the overall ceiling. This deduction is claimed independently of the 80C umbrella.

Section 80DD — Deduction for expenses incurred on the medical treatment, training and rehabilitation of a dependent with a disability, or amounts deposited under specified schemes for their maintenance, with the deduction amount varying based on the severity of disability (normal versus severe disability categories).

Section 80DDB — Deduction for expenses actually incurred on the medical treatment of specified diseases (such as certain neurological conditions, cancer, or chronic kidney conditions) for self or a dependent, with a higher ceiling typically available for senior citizens.

Section 80E — Deduction for interest paid on an education loan taken for higher education of self, spouse, children, or a student for whom the taxpayer is a legal guardian. Notably, there is no upper monetary limit on this deduction — the entire interest amount is deductible, but only for a limited number of consecutive years (commonly eight years) from the start of repayment.

Section 80EE / 80EEA — Additional deduction for interest on home loans for first-time home buyers, subject to conditions on property value, loan amount, and sanction period, over and above the deduction available under the house property income provisions.

Section 80G — Deduction for donations made to specified charitable institutions, relief funds, and notified organisations, with different donations qualifying for either 100% or 50% deduction, and some subject to a further cap linked to adjusted gross total income. Cash donations above a specified small threshold do not qualify, so payments should be made through banking channels.

Section 80GG — Deduction for rent paid by individuals who do not receive House Rent Allowance from an employer, subject to conditions including that the taxpayer, spouse, or minor child does not own residential property in the location of employment or residence.

Section 80GGA — Deduction for donations made for scientific research or rural development to specified institutions, generally available to taxpayers who do not have business income.

Section 80GGB / 80GGC — Deductions for contributions made by companies (80GGB) and other persons or entities excluding local authorities and certain artificial entities (80GGC) to registered political parties or electoral trusts, provided the payment is not made in cash.

Section 80TTA — Deduction on interest earned from savings bank accounts, available to individuals and HUFs other than senior citizens, subject to a cap commonly cited around ₹10,000.

Section 80TTB — A more generous version of the above specifically for senior citizens, covering interest income from savings accounts as well as fixed and recurring deposits, subject to a higher combined cap, commonly cited around ₹50,000; senior citizens claim either 80TTA or 80TTB, not both.

Section 80U — Deduction available to a taxpayer who themselves suffers from a specified disability, with the amount varying based on whether the disability is classified as normal or severe, mirroring the structure of 80DD but claimed by the disabled individual directly rather than a caregiver.

Umbrella Caps and Overlaps to Understand

Several of these deductions are not independent of each other and understanding the overlaps prevents double-counting errors:

• 80C, 80CCC and 80CCD(1) together are capped under the combined umbrella of Section 80CCE, commonly cited at ₹1.5 lakh in total, regardless of how you split contributions across the three.
• 80CCD(1B) is a genuinely additional layer on top of the 80CCE cap, specifically for extra NPS contributions.
• 80DD, 80DDB and 80U are related but distinct — 80DD and 80U both concern disability, but 80DD is claimed by a person supporting a disabled dependent while 80U is claimed by the disabled taxpayer for themselves; 80DDB is entirely separate, concerning treatment costs for specified diseases regardless of disability status.
• 80TTA and 80TTB are mutually exclusive for senior citizens — once a taxpayer qualifies as a senior citizen, 80TTB replaces 80TTA rather than stacking with it.
• 80G donations are subject to different treatment depending on the recipient institution — some qualify for full deduction without any further percentage-of-income cap, while others are restricted to a percentage of adjusted gross total income.

How to Claim These Deductions

1. Identify every eligible expense or investment made during the financial year across insurance, loans, donations, and medical expenses.
2. Gather supporting documents — premium receipts, loan interest certificates, donation receipts with the institution's registration details, medical bills, and disability certificates where relevant.
3. Declare investments to your employer, if salaried, during the declaration windows so that TDS on salary reflects the deductions and you are not left with a large refund claim later.
4. Use the Chapter VI-A schedule in your ITR to enter each applicable section separately — most return forms have dedicated line items for 80C, 80D, 80E, 80G, and so on.
5. Cross-check the umbrella caps before finalising figures, particularly for the 80C-family and the disability-related sections.
6. Retain all documentation for the applicable retention period in case of scrutiny or notice from the tax department.

Old Regime vs New Regime: Which Deductions Survive

This is the single most important consideration for FY 2025-26 planning. The new tax regime, now the default option, disallows the vast majority of Chapter VI-A deductions. Broadly:

• Not available under the new regime: 80C, 80CCC, 80CCD(1), 80CCD(1B), 80D, 80DD, 80DDB, 80E, 80EE/80EEA, 80G, 80GG, 80GGA, 80TTA, 80TTB, and 80U are generally disallowed if you opt for the new regime.
• Available under the new regime: Section 80CCD(2), the employer's contribution to NPS, remains a notable exception and continues to be deductible even under the new regime, subject to applicable percentage-of-salary limits.
• Standard deduction, while technically outside Chapter VI-A, is also available in a modified form under the new regime for salaried taxpayers and pensioners, and is often considered alongside this analysis when comparing regimes.

Given this stark difference, taxpayers with significant 80C, 80D, home loan interest, or donation-based tax planning typically find the old regime more beneficial, while those with minimal deductions and investments often find the new regime's lower slab rates more advantageous. This comparison should be done afresh each year, since salaried individuals without business income can generally choose either regime annually.

Illustrative Example

Consider a salaried taxpayer under the old regime who invests in ELSS and PPF to use up the ₹1.5 lakh 80C limit, pays health insurance premiums for self and senior citizen parents claimed under 80D, has an ongoing education loan for a child claimed under 80E, and makes a bank-routed donation to an eligible charity claimed under 80G. Collectively, these deductions can reduce taxable income substantially compared to the new regime, where none of these (except any employer NPS contribution under 80CCD(2)) would be available.

The same taxpayer under the new regime would only benefit from the standard deduction and 80CCD(2) if applicable, resulting in a materially different taxable income base, though offset by generally lower slab rates. Which regime results in lower actual tax payable depends entirely on the taxpayer's specific income level and deduction profile — always run both computations before deciding, since limits and slab rates are revised periodically and should be verified for the exact assessment year.

Common Pitfalls to Avoid

• Assuming all deductions survive the new regime — this is the most damaging misconception, since the vast majority of Chapter VI-A benefits are simply unavailable if you opt for the new regime.
• Exceeding the 80C-family umbrella without realising it — spreading investments across PPF, ELSS, and insurance without tracking the combined total against the ₹1.5 lakh cap.
• Cash donations under 80G — donations paid in cash beyond the permitted small threshold do not qualify for deduction; always use banking channels.
• Missing parents' senior citizen status for 80D — failing to claim the higher sub-limit available when parents are senior citizens results in under-claiming.
• Claiming 80TTA and 80TTB together as a senior citizen — these are mutually exclusive; senior citizens should claim only 80TTB.
• Not retaining disability certificates — 80DD and 80U claims require a valid certificate from a prescribed medical authority, renewed as required.
• Forgetting to compare regimes annually — deduction-heavy taxpayers sometimes default into the new regime without checking whether the old regime, with all their Chapter VI-A claims, actually results in lower tax.

Frequently Asked Questions

Can I claim both 80C and 80CCD(1B) in the same year?

Yes. 80C sits within the ₹1.5 lakh 80CCE umbrella along with 80CCC and 80CCD(1), while 80CCD(1B) is a separate additional deduction specifically for extra NPS contributions, available over and above that umbrella.

Is the 80C deduction available under the new tax regime?

No. Section 80C, along with most other Chapter VI-A deductions, is not available if you opt for the new tax regime. The only major Chapter VI-A exception that survives is Section 80CCD(2), the employer's NPS contribution.

What is the difference between 80DD and 80U?

80DD is claimed by a taxpayer who supports a dependent with a disability, covering treatment, training and maintenance expenses. 80U is claimed by the taxpayer themselves when they have a specified disability. Both require a valid disability certificate.

Can senior citizens claim both 80TTA and 80TTB?

No, these are mutually exclusive for senior citizens. Once you qualify as a senior citizen, you claim the more generous 80TTB, which covers savings account interest as well as fixed and recurring deposit interest, rather than the more limited 80TTA.

Is there a maximum limit on the 80E education loan interest deduction?

No, Section 80E does not impose a rupee ceiling on the interest deduction — the entire interest paid during the year is deductible, but only for a specified number of consecutive years from when repayment begins, so verify the current applicable duration.

Do I need to route donations through a bank to claim 80G?

Yes, for any donation amount beyond a small specified cash threshold, payment must be made through banking channels such as cheque, demand draft, or digital transfer to qualify for the 80G deduction; purely cash donations above that threshold are disallowed.

Can HUFs claim Chapter VI-A deductions?

Many Chapter VI-A sections, including 80C, 80D, and 80G, extend to Hindu Undivided Families, though some sections that are inherently personal in nature, such as 80U (disability of self) or 80E (loan for one's own or specified relatives' education), have narrower applicability to HUFs.

Should I choose the old regime just to maximise Chapter VI-A deductions?

Not necessarily. The right choice depends on comparing your actual tax liability under both regimes for your specific income and deduction profile. Taxpayers with substantial 80C, 80D, home loan, and donation claims often find the old regime beneficial, but this should be verified through an actual computation each year rather than assumed.

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