Deductions Beyond 80C: 80D, 80CCD(1B), 80E, 80G and More

The new tax regime is the default for FY 2025-26, and it removes almost every deduction in this article. Under the new regime you get lower slab rates and the Section 87A rebate that makes income up to ₹12 lakh (₹12.75 lakh for salaried, after standard deduction) effectively tax-free — but no 80C, no 80D, no HRA, no 80E, no 80G.

Only a short list survives in the new regime:

So the real question this article answers is: do your total deductions add up to enough to make the old regime worth choosing? Work through the list below, total it, and then compare — see our guide to the new vs old tax regime.

Everything that follows is old-regime only, unless stated otherwise.

The most valuable deduction after 80C.

Points that matter in practice:

For expenses on the treatment, training, or rehabilitation of a dependent with a disability, or a deposit into an approved scheme for them: ₹75,000, rising to ₹1,25,000 for severe disability (80% or more). This is a fixed deduction — you get the full amount regardless of what you actually spent. A disability certificate from a government medical board is required.

For the treatment of specified illnesses (including malignant cancers, chronic renal failure, AIDS, Parkinson's, and dementia): the actual amount paid, up to ₹40,000 — rising to ₹1,00,000 where the patient is a senior citizen. You need a prescription from a specialist, and the claim must be reduced by any insurance payout or employer reimbursement received.

Where the taxpayer has a certified disability: ₹75,000, rising to ₹1,25,000 for severe disability. Like 80DD, it's a fixed deduction rather than expense-linked. Note that 80DD and 80U cannot both be claimed for the same person.

This is the single easiest way to push past the 80C ceiling. An additional ₹50,000 deduction for your own contributions to an NPS Tier 1 account, over and above the ₹1.5 lakh limit — taking your total possible deduction to ₹2,00,000. Contributions to the NPS Vatsalya scheme also qualify.

Example: if you've already used the full ₹1.5 lakh through EPF, PPF, and insurance, ₹50,000 into NPS Tier 1 still earns you a further deduction — worth roughly ₹15,600 in tax at the 30% slab.

Your employer's contribution to your NPS is deductible separately, without touching the ₹1.5 lakh or ₹50,000 limits. The limit is 14% of basic + DA for government employees and — from FY 2025-26 — 14% for private-sector employees too, where they are in the new regime (the old-regime limit for private employees remains 10%).

This is the standout: it's one of the very few meaningful deductions that still works under the new regime. If your employer offers NPS as part of your salary structure, it's worth using regardless of which regime you pick.

The entire interest paid on an education loan is deductible — there is no upper limit. It's available for up to 8 years from the year repayment begins (or until the interest is fully repaid, if earlier), for a loan taken for yourself, your spouse, your children, or a student for whom you are the legal guardian. Note that only the interest qualifies, not the principal.

Interest on a loan to buy an electric vehicle, up to ₹1,50,000, subject to the loan being sanctioned within the specified window.

Not a Chapter VI-A deduction, but often the largest of all: interest on a home loan for a self-occupied property, up to ₹2,00,000 a year. (For a let-out property the treatment differs — see our guide to income from house property.)

A senior citizen claims 80TTB, not 80TTA; the two aren't combined.

For those who pay rent but receive no HRA — typically the self-employed, or salaried people whose package has no HRA component. The deduction is the least of:

If you do receive HRA, you claim that exemption instead — see our guide to HRA exemption.

Donations to approved funds and charitable institutions qualify at 100% or 50% of the amount given, depending on the institution, and some are subject to a qualifying limit of 10% of adjusted gross total income. Two practical rules:

The Income Tax Act, 2025 comes into force from 1 April 2026, and it renumbers these provisions — 80C becomes 123, 80CCD(1B) becomes 124, 80D becomes 126, 80G becomes 133, and 80TTA/80TTB become 153, among others. The deductions and their limits are unchanged — only the numbering.

Importantly, this does not affect the return you file for AY 2026-27, which covers FY 2025-26 and is governed by the Income Tax Act, 1961 with the familiar numbers. Expect the new numbering from AY 2027-28 onwards.

A taxpayer using the old regime well might stack: ₹1.5 lakh (80C) + ₹50,000 (80CCD(1B)) + ₹50,000 (80D with senior parents) + ₹2 lakh (home loan interest) — over ₹4.5 lakh before HRA or 80E. That's the scale at which the old regime beats the new one. With few deductions, the new regime's lower rates usually win.

Limits, regime rules, and section numbers are all in flux — the Act itself is being replaced. Treat this as a current-position guide for FY 2025-26 and confirm the applicable limits, or have a professional run both regimes for you, before filing.

Section 80C is a floor, not a ceiling. Above it sit health insurance under 80D, an extra ₹50,000 of NPS under 80CCD(1B), unlimited education loan interest under 80E, home loan interest under Section 24(b), donations, savings interest, and disability-related deductions — potentially several lakh in total. The decisive question is which regime you choose: total your eligible deductions first, then compare against the new regime's lower rates. And whichever you pick, check whether your employer's NPS contribution under 80CCD(2) is being used — it's the one meaningful deduction that survives on both sides.

---

1. Can I claim 80D or 80E under the new tax regime? No. Under the new regime, almost all Chapter VI-A deductions — including 80C, 80D, 80E, and 80G — are unavailable. The main survivors are the ₹75,000 standard deduction, employer NPS under 80CCD(2), 80CCH(2), 80JJAA, and the family pension deduction.

2. What is the maximum deduction under Section 80D? ₹25,000 for self, spouse, and children (₹50,000 if any is a senior citizen), plus a separate ₹25,000 for parents (₹50,000 if either is a senior citizen) — up to ₹1,00,000 in total. A ₹5,000 preventive health check-up sub-limit sits within these figures.

3. How can I claim more than ₹1.5 lakh in deductions? The simplest route is Section 80CCD(1B): an additional ₹50,000 for NPS Tier 1 contributions, over and above the ₹1.5 lakh 80C limit, taking your total to ₹2,00,000. Beyond that, 80D, home loan interest under Section 24(b), and 80E all sit outside the 80C basket.

4. Is there a limit on the education loan deduction under 80E? No. The entire interest paid is deductible, with no upper cap, for up to 8 years from the year repayment begins. Only interest qualifies — not the principal.

5. What is the difference between 80TTA and 80TTB? 80TTA allows up to ₹10,000 on savings account interest for those under 60. 80TTB allows senior citizens up to ₹50,000, and covers fixed and recurring deposit interest as well. A senior citizen claims 80TTB instead of, not in addition to, 80TTA.

6. Do the section numbers change under the Income Tax Act, 2025? Yes — 80C becomes 123, 80D becomes 126, 80G becomes 133, and so on, from 1 April 2026. The deductions and limits are unchanged. Your AY 2026-27 return still uses the familiar Income Tax Act, 1961 numbering.

---

---

---