Complete Income Tax Deductions for Salaried Employees (FY 2025-26 | AY 2026-27)
Important: Most of the deductions below are available only under the Old Tax Regime. Under the New Tax Regime, most Chapter VI-A deductions (like 80C and 80D) are not available, although some deductions such as the standard deduction and certain employer contributions remain available.
1. Standard Deduction
| Particular | Amount |
|---|---|
| Salaried Employees | ₹75,000 |
| Pensioners | ₹75,000 |
Available under both Old and New Tax Regimes.
2. Section 80C (Maximum ₹1,50,000)
| Investment | Eligible |
|---|---|
| Employee Provident Fund (EPF) | ✅ |
| Public Provident Fund (PPF) | ✅ |
| ELSS Mutual Funds | ✅ |
| National Savings Certificate (NSC) | ✅ |
| Tax Saving Fixed Deposit (5 Years) | ✅ |
| Sukanya Samriddhi Yojana | ✅ |
| Life Insurance Premium | ✅ |
| ULIP | ✅ |
| Principal Repayment of Home Loan | ✅ |
| Stamp Duty & Registration Charges | ✅ |
| Children’s Tuition Fees (Maximum 2 Children) | ✅ |
| Senior Citizen Savings Scheme (SCSS) | ✅ |
Maximum Deduction: ₹1,50,000 (combined limit).
3. Section 80CCD(1B) – NPS
| Investment | Maximum Deduction |
|---|---|
| National Pension System (NPS) | ₹50,000 |
This is over and above the ₹1.5 lakh limit under Section 80C.
4. Section 80CCD(2)
Employer’s contribution to NPS.
- Government employees: up to 14% of salary (subject to applicable rules)
- Other employees: as per the applicable provisions for FY 2025-26
This deduction is available even under the New Tax Regime if the conditions are met.
5. Section 80D – Health Insurance
| Category | Maximum Deduction |
|---|---|
| Self + Spouse + Children (<60 years) | ₹25,000 |
| Self (Senior Citizen) | ₹50,000 |
| Parents (<60 years) | ₹25,000 |
| Parents (Senior Citizen) | ₹50,000 |
| Preventive Health Check-up | Up to ₹5,000 (within overall limit) |
Maximum possible deduction:
- ₹50,000 (self/family + parents below 60)
- ₹75,000 (one senior citizen category)
- ₹1,00,000 (both self and parents are senior citizens)
6. Section 80E – Education Loan
- Interest paid on higher education loan
- No upper monetary limit
- Available for up to 8 years
7. Section 80EE
First-time home buyer.
Maximum deduction:
₹50,000 (subject to conditions).
8. Section 80EEA
Affordable housing loan.
Maximum deduction:
₹1,50,000 (for eligible loans sanctioned within the prescribed period and conditions).
9. Section 80EEB
Electric Vehicle Loan
Maximum deduction:
₹1,50,000 on eligible interest.
10. Section 80G
Donations to approved charitable institutions.
Deduction:
- 50%
- 100%
Depends on the approved institution.
11. Section 80GG
House Rent (if HRA is not received).
Available subject to prescribed conditions.
12. Section 80TTA
Savings Bank Interest
Maximum deduction:
₹10,000
(Not applicable to senior citizens.)
13. Section 80TTB
Senior Citizens
Interest deduction up to:
₹50,000
14. Section 80U
Person with Disability
| Disability | Deduction |
|---|---|
| Normal Disability | ₹75,000 |
| Severe Disability | ₹1,25,000 |
15. Section 80DD
Dependent with Disability
| Disability | Deduction |
|---|---|
| Normal | ₹75,000 |
| Severe | ₹1,25,000 |
16. Section 80DDB
Specified Diseases
Deduction available for eligible expenditure subject to the applicable limits and conditions.
HRA Exemption (Old Regime)
Available if:
- HRA is received.
- Rent is paid.
Exemption is calculated based on the Income Tax Act rules.
Leave Travel Allowance (LTA)
- Domestic travel only
- Available under Old Regime
- Subject to conditions
Home Loan Benefits
Section 24(b)
Interest on self-occupied property:
- Up to ₹2,00,000
Principal Repayment
Covered under Section 80C.
Employer Benefits (Generally Tax-Efficient)
- Employer EPF Contribution
- Employer NPS Contribution
- Food Coupons/Meal Benefits (subject to applicable rules)
- Telephone Reimbursement
- Internet Reimbursement
- Laptop/Computer
- Health Check-up (where applicable)
- Company Car (tax treatment depends on usage)
Some employer-provided benefits continue to receive favorable tax treatment under the New Tax Regime.
Maximum Tax Saving Summary (Old Regime)
| Section | Maximum Deduction |
|---|---|
| Standard Deduction | ₹75,000 |
| 80C | ₹1,50,000 |
| 80CCD(1B) | ₹50,000 |
| 80D | Up to ₹1,00,000 |
| 24(b) Home Loan Interest | ₹2,00,000 |
| 80EE | ₹50,000 |
| 80EEA | ₹1,50,000 |
| 80EEB | ₹1,50,000 |
| 80TTA | ₹10,000 |
| 80TTB | ₹50,000 |
| 80U | ₹75,000 / ₹1,25,000 |
| 80DD | ₹75,000 / ₹1,25,000 |
| 80E | No Limit (interest, subject to conditions) |
| 80G | As per eligible donation |
| HRA | As per calculation |
| LTA | As per rules |
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