Deduction Provisions: Income Tax Act, 1961 vs Income Tax Act, 2025

| Last updated: 04 August 2026

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Quick Summary

The Income-tax Act, 2025 introduces a reorganisation of deduction provisions previously found in the 1961 Act. While many deductions retain their core purpose, their structure and numbering have been updated for legislative clarity. Taxpayers should review these changes carefully, as some provisions remain similar, while others now refer to schedules or related sections for detailed conditions.

The Income-tax Act, 2025 reorganises several deduction provisions that earlier appeared under the Income-tax Act, 1961. In many cases, the 2025 law retains the substance of the old deductions but shifts, renumbers, or restructures them for better legislative clarity. Therefore, taxpayers should read the new provisions carefully because some deductions remain largely unchanged, while others now rely on schedules or corresponding sections for detailed conditions.

Income Tax Deductions: 1961 Act vs 2025 Act

Key deduction provisions

Old Income-tax Act, 1961	New Income-tax Act, 2025	Nature of Payment	Deduction Limit	Eligibility	Note
80C	123	Life insurance premium, provident fund, specified investments, deferred annuity and other eligible investments (Read Schedule XV of the Act, 2025 for more details)	Rs. 1,50,000	Individual and HUF	Only legislative restructuring. Eligible investments have been shifted to Schedule XV.
80CCC	123	Pension Funds	Rs. 1,50,000	Individual
80CCD	124	NPS	Rs. 50,000	Individual / Employee / Employer
80D	126	Health Insurance Premium	Rs. 50,000 Aggregate (Health insurance up to Rs. 25,000 + Medical Expenditure up to Rs. 50,000) + Preventive Health Check-up Rs. 5,000	Individual / HUF
80DD	127	Disabled Maintenance including medical treatment of a dependant with disability	Deduction 1. Disability Rs.75,000 2. Severe Disability (80% or more) Rs. 1,25,000	Resident Individual / HUF (Not eligible if dependent disabled person claimed deduction u/s 154)	No more flat deduction
80DDB	128	Medical treatment of diseases	Senior Citizens Rs. 1,00,000 Others Rs. 40,000	Resident Individual / HUF	Dependent definition u/s 127(9)
80E	129	Interest on Education Loan	Amount paid as interest	Individual
80EE	130	Interest on Loan for Residential House Property	Rs. 50,000	Individual
80EEA	131	Affordable Housing	Rs. 1,50,000	Individual
80G	133	Donations to specified funds and charitable institutions		All eligible assessees
80TTA	153	Interest on Deposits – Other than Senior Citizens	Rs. 10,000	Individual or HUF	Two earlier provisions are now brought under a single statutory section, with separate conditions.
80TTB	153	Interest on Deposits – Senior Citizens	Rs. 50,000	Senior Citizens
80U	154	Person with Disability	Flat Deduction – 1. Disability Rs.75,000 2. Severe Disability (80% or more) Rs. 1,25,000	Resident Individual

FAQ :

The Income-tax Act, 2025 reorganises several deduction provisions from the 1961 Act, often shifting, renumbering, or restructuring them for better legislative clarity.

In many cases, the substance of the deductions remains the same, but taxpayers should check the specific sections and schedules under the 2025 Act as limits or conditions might have been adjusted or detailed differently.

Eligible investments for the deduction previously under Section 80C are now detailed in Schedule XV of the Income-tax Act, 2025.

Under the 2025 Act, the deduction for individuals with a disability (Section 154) and for disabled maintenance (Section 127) has changed from a flat deduction to specific amounts based on the level of disability, with no more flat deductions.

The deduction for interest on deposits for senior citizens, previously under Section 80TTB, is now covered under Section 153 of the Income-tax Act, 2025.

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Pranab Banerjee

Software Maker & Income Tax Practisioner

I am a B.com from Kolkata University, West Bengal. I have some knowledge in Ms. Excel and ors DBMS in Computer. I have also some knowledge about Accounts and Income Tax. I have already prepared various Excel Calculation software and shared the same. Visit My Web Site www.itaxsoftware.net OR More Income Tax Related E ... Read more

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