Pranab Banerjee
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.
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 |
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 |
CAclubindia
