Deductions Under ITA 2025 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VI-A of the Income Tax Act 2025 provides a range of deductions from gross total income. Important: Most Chapter VI-A deductions are available only under the old/alternative regime. Under the default regime, only select deductions like employer NPS contribution (80CCD(2)) and interest on education loan (80E) are available.
Section 80C — Investment Deductions (Max Rs. 1.5 Lakh)
Available only under old regime. Eligible instruments:
- ELSS (Equity Linked Savings Scheme) — 3-year lock-in
- PPF (Public Provident Fund)
- EPF (Employee Provident Fund — employee contribution)
- Life insurance premium
- NSC (National Savings Certificate)
- 5-year bank/post office fixed deposit
- Home loan principal repayment
- Children's tuition fees (up to 2 children)
- NPS contribution (Tier 1 — for 80CCD(1))
- Sukanya Samriddhi Account
Section 80CCD(1B) — Additional NPS Deduction
Additional Rs. 50,000 deduction for voluntary NPS Tier-1 contribution, over and above 80C limit of Rs. 1.5 lakh. Available under old regime. Total 80C + 80CCD(1B) = Rs. 2 lakh.
Section 80CCD(2) — Employer NPS Contribution
Available in both default and old regime. Employer contribution to NPS is deductible up to 14% of salary for government employees and 10% for others. No cap in rupee terms (subject to 14%/10%).
Section 80D — Health Insurance Premium
| Category | Maximum Deduction |
|---|---|
| Self, spouse, children (below 60 years) | Rs. 25,000 |
| Self or parents (60 years+) | Rs. 50,000 |
| Parents below 60 years | Rs. 25,000 |
| Max combined (if all senior citizens) | Rs. 1,00,000 |
Section 80E — Education Loan Interest
Available in default regime. Full interest deduction on education loan (no ceiling) for up to 8 consecutive Tax Years from the year repayment begins. Applies to loans for higher education of self, spouse, children, or student for whom you are legal guardian.
Section 80G — Donations
Donations to approved institutions deductible at 100% or 50% depending on the institution type. Maximum 10% of adjusted gross total income applies for most non-government institutions.
Section 80TTA / 80TTB — Savings Interest
- 80TTA: Rs. 10,000 deduction on savings account interest (individuals below 60)
- 80TTB: Rs. 50,000 deduction on all interest income for senior citizens (60+) — FD, RD, savings account
Section 80U — Disability
Fixed deduction of Rs. 75,000 (disability) or Rs. 1,25,000 (severe disability — 80%+ disability) for the person with disability. Requires certificate from notified medical authority. Available under old regime.
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Key Facts About Deductions Under ITA 2025
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
Is 80C deduction available under the default regime?
No. 80C and most Chapter VI-A deductions are available only under the old/alternative regime, not the default regime of ITA 2025.
What is the maximum 80C deduction?
Rs. 1,50,000 per Tax Year. An additional Rs. 50,000 is available under Section 80CCD(1B) for voluntary NPS contribution, totalling Rs. 2 lakh.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
Deductions Under ITA 2025: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.
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Why This Matters
Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in income tax are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.
Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.