Complete List of Deductions Under Chapter VI-A
- Nimisha Panda
- 6 days ago
- 10 min read
Chapter VI-A of the Income Tax Act, 1961 provides a structured way for taxpayers to reduce their taxable income through specific deductions. These deductions cover investments, insurance premiums, medical expenses, donations, and interest income, offering comprehensive relief under the old tax regime. The updated list for FY 2024-25 includes sections ranging from 80C to 80U, with limits designed to encourage financial discipline and savings. TaxBuddy simplifies this process by helping taxpayers identify eligible deductions, apply them accurately, and maximize tax benefits with AI-driven precision and expert support.
Table of Contents
Understanding Chapter VI-A Deductions
Chapter VI-A of the Income Tax Act, 1961 provides a comprehensive list of deductions that help taxpayers reduce their total taxable income. These deductions cover various expenses and investments, encouraging individuals to save, invest, and plan their finances responsibly. They apply mainly to those opting for the old tax regime and include sections ranging from 80C to 80U. By claiming these deductions, taxpayers can significantly lower their tax liability while achieving long-term financial goals such as retirement planning, education funding, and health coverage.
Applicability: Old vs New Tax Regime
Most deductions under Chapter VI-A are applicable only under the old tax regime. The new tax regime, introduced under Section 115BAC, offers lower tax rates but restricts most exemptions and deductions. However, specific sections such as 80CCD(1B), which covers additional contributions to the National Pension System (NPS), are still allowed under the new regime. Taxpayers must evaluate which regime benefits them more, considering their eligible deductions and overall income profile before filing their returns.
Section 80C – Most Common Investments and Expenses
Section 80C is the most widely used deduction by individual taxpayers. It allows a maximum deduction of ₹1,50,000 for investments and expenses such as contributions to Provident Fund (PF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), Life Insurance Premiums, National Savings Certificate (NSC), and repayment of the principal amount of home loans. Tuition fees paid for up to two children also qualify. This section encourages savings and investments that yield long-term financial benefits while reducing taxable income.
Additional Pension and NPS Benefits under Sections 80CCC, 80CCD(1), 80CCD(1B), and 80CCD(2)
These sections extend tax benefits for contributions to pension schemes and the National Pension System (NPS). Section 80CCC covers contributions to pension funds offered by insurers, while Section 80CCD(1) allows deduction for employee contributions to NPS within the 80C overall limit. Section 80CCD(1B) offers an additional deduction of ₹50,000 beyond the ₹1.5 lakh cap, specifically to promote retirement savings. Section 80CCD(2) provides tax relief on employer contributions to NPS up to 10% of salary. These combined benefits make NPS one of the most tax-efficient retirement planning tools available to salaried individuals.
Section 80D – Medical Insurance Premiums and Preventive Health Check-ups
Under Section 80D, taxpayers can claim deductions for medical insurance premiums paid for themselves, their families, and parents. The limit is ₹25,000 for individuals and ₹50,000 for senior citizens. An additional deduction of up to ₹5,000 can be claimed for preventive health check-ups within the overall limit. Payments must be made through banking channels (except for check-ups). This section encourages taxpayers to prioritize health protection and ensures financial security against unexpected medical expenses.
Section 80DD and 80DDB – Medical Deductions for Disability and Specific Diseases
Section 80DD provides deductions for expenses incurred on medical treatment or maintenance of a dependent with a disability. The deduction is ₹75,000 for normal disability and ₹1,25,000 for severe disability (80% or more). Section 80DDB allows deductions for medical treatment of specific diseases like cancer, chronic renal failure, or neurological disorders. The deduction limit varies from ₹40,000 for non-senior citizens to ₹1,00,000 for senior citizens. Both sections are aimed at offering relief to families managing long-term or severe health conditions.
Section 80E – Deduction on Interest Paid for Education Loans
This section allows deductions for interest paid on education loans taken for higher studies in India or abroad. There is no maximum limit, but the deduction is available for eight consecutive years starting from the year repayment begins. The loan must be taken from a recognized financial institution or bank. This provision helps students and parents manage education-related financial burdens while encouraging investment in quality education.
Section 80G – Tax Benefits on Donations to Charitable Institutions
Section 80G offers tax deductions for donations made to eligible charitable organizations and relief funds. Depending on the recipient institution, the deduction can be 50% or 100% of the donation amount, with or without restrictions. Donations must be made via cheque, demand draft, or digital payment. Contributions to recognized funds such as the Prime Minister’s Relief Fund, educational trusts, or registered NGOs qualify for this benefit, promoting social responsibility and philanthropy among taxpayers.
Section 80GG – Deduction for Rent Paid Without HRA
Section 80GG provides relief to individuals who pay rent but do not receive House Rent Allowance (HRA) from their employer. The deduction is the least of ₹5,000 per month, 25% of total income, or excess rent paid over 10% of income. To claim this deduction, the taxpayer must file Form 10BA, confirming that they do not own any residential property. It’s particularly useful for self-employed or private-sector employees not eligible for HRA benefits.
Section 80TTA and 80TTB – Deductions on Bank Interest Income
Section 80TTA allows non-senior citizens to claim up to ₹10,000 as a deduction on interest earned from savings bank accounts. Senior citizens can claim up to ₹50,000 under Section 80TTB, which includes interest earned from savings, fixed deposits, and post office accounts. These deductions encourage individuals to maintain regular savings while ensuring that smaller interest incomes remain tax-free.
Section 80U – Deduction for Individuals with Disabilities
Section 80U provides a fixed deduction to individuals with a disability, without requiring proof of actual medical expenses. The deduction amount is ₹75,000 for normal disability and ₹1,25,000 for severe disability. A valid medical certificate from a government hospital is required for claiming this benefit. This section ensures that individuals with disabilities receive equitable tax relief to support their additional living and medical costs.
Section 80EEB – Interest Deduction on Electric Vehicle Loans
Section 80EEB offers a deduction of up to ₹1,50,000 on interest paid on loans taken for purchasing electric vehicles. The loan should be sanctioned between specified dates by a recognized financial institution. This deduction was introduced to promote eco-friendly transportation and support India’s shift towards sustainable energy adoption.
Summary Table: Complete List of Deductions Under Chapter VI-A
A summarized view of deductions helps taxpayers plan effectively. The key sections include 80C for investments (₹1.5 lakh), 80D for health insurance (₹25,000–₹50,000), 80E for education loans (no limit), 80G for donations (up to 100%), and 80U for disability benefits (₹75,000–₹1,25,000). Additional benefits like 80CCD(1B) and 80EEB enhance long-term savings and sustainability goals.
Documents Required for Claiming Deductions via Bank Accounts
To claim deductions, taxpayers must maintain proper documentation such as bank statements, premium receipts, donation certificates, loan interest certificates, and medical bills. Interest-related deductions like 80TTA and 80TTB require passbooks or bank statements showing credited interest. Ensuring all transactions are through verifiable banking channels is crucial for validation during income tax filing.
How to Claim Chapter VI-A Deductions While Filing ITR
While filing the Income Tax Return, taxpayers need to report eligible deductions under the “Deductions and Exemptions” section of the ITR form. They must accurately enter the claimed amount for each section supported by valid proof. Using platforms like TaxBuddy simplifies this process through automated form mapping and real-time validation, minimizing errors and ensuring maximum eligible benefits are claimed seamlessly.
How TaxBuddy Simplifies Claiming Chapter VI-A Deductions
TaxBuddy helps taxpayers identify, calculate, and claim all eligible Chapter VI-A deductions accurately. Its AI-driven system scans uploaded Form 16 and financial data to suggest applicable deductions automatically. The expert-assisted filing option further ensures that no eligible benefit is missed and all documentation meets compliance standards. With personalized support and automated validation, TaxBuddy ensures an efficient and stress-free tax filing experience.
Conclusion
Chapter VI-A remains one of the most effective tools for reducing taxable income under the old tax regime. From investment-linked deductions under Section 80C to health-related benefits under Section 80D and 80DD, these provisions encourage financial security and responsible spending. Taxpayers can benefit greatly by ensuring they claim all applicable deductions accurately during return filing. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides flexibility to suit different taxpayer needs. It offers both self-filing and expert-assisted plans. In the self-filing plan, users can file their returns independently using AI-based assistance that automatically identifies applicable deductions and flags potential errors. The expert-assisted plan, on the other hand, connects users with certified tax professionals who handle the entire filing process—from data review and validation to final submission. This dual approach ensures convenience for those comfortable filing on their own as well as for individuals seeking professional guidance.
2. Which is the best site to file ITR? The best site to file ITR depends on how comfortable a taxpayer is with tax compliance. The government’s official portal (www.incometax.gov.in) provides the primary platform for filing returns. However, platforms like TaxBuddy offer a smoother and more intuitive experience through automation, AI-driven validation, and expert review. TaxBuddy minimizes manual data entry, ensures all eligible deductions under Chapter VI-A are applied, and provides post-filing support—making it one of the most efficient and reliable options available in India.
3. Where to file an income tax return? An income tax return can be filed online through the Income Tax Department’s e-filing website or trusted third-party platforms such as TaxBuddy. Filing online allows for automatic data import from Form 26AS, Form 16, and Annual Information Statement (AIS). TaxBuddy simplifies this process further by integrating data verification tools that ensure accurate entry of deductions, exemptions, and income sources. This helps taxpayers avoid mismatches or notice-related issues post filing.
4. Are deductions under Chapter VI-A applicable under both tax regimes? Most deductions under Chapter VI-A are applicable only under the old tax regime. The new tax regime introduced under Section 115BAC offers lower tax rates but restricts exemptions and deductions like those under 80C, 80D, and 80G. However, specific provisions such as the additional NPS deduction under Section 80CCD(1B) remain available even under the new regime. Taxpayers should compare their total deductions with the benefit of lower tax rates before selecting a regime for the financial year.
5. What is the maximum deduction available under Section 80C? Section 80C allows a maximum deduction of ₹1,50,000 from taxable income in a financial year. It covers a wide range of eligible investments and expenses such as contributions to Public Provident Fund (PPF), Employee Provident Fund (EPF), National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), life insurance premiums, principal repayment on home loans, and tuition fees for children. The total limit of ₹1.5 lakh includes investments under 80CCC and 80CCD(1).
6. Can medical insurance premiums for parents be claimed separately under Section 80D? Yes, taxpayers can claim separate deductions for premiums paid for their parents’ medical insurance. The limit is ₹25,000 if the parents are below 60 years of age and ₹50,000 if they are senior citizens. This amount is over and above the deduction allowed for the taxpayer’s own family. Therefore, an individual can claim up to ₹1,00,000 in total—₹50,000 for self and family (if senior citizens) and ₹50,000 for parents (if senior citizens). Payments should be made through online banking or cheque to qualify.
7. Is donation to any NGO eligible under Section 80G? Not all donations qualify under Section 80G. Only contributions made to government-approved charitable institutions, relief funds, or organizations registered under Section 80G are eligible. Depending on the type of institution, the deduction can be 50% or 100% of the donated amount, with or without qualifying limits. Donations made in cash exceeding ₹2,000 are not eligible. Therefore, taxpayers must verify the institution’s eligibility and make donations through traceable modes like cheque, draft, or online payment.
8. How can interest earned on savings accounts be claimed under Section 80TTA? Non-senior citizens can claim a deduction of up to ₹10,000 on interest earned from savings accounts held in banks, cooperative societies, or post offices under Section 80TTA. This benefit applies only to savings account interest and not fixed deposit or recurring deposit interest. Taxpayers should check their annual bank statements or Form 26AS to determine the total interest received during the year and claim the deduction while filing their ITR.
9. What is the difference between deductions under 80TTA and 80TTB? Section 80TTA applies to non-senior citizens and offers a deduction of up to ₹10,000 on interest from savings bank accounts. Section 80TTB, on the other hand, is designed for senior citizens aged 60 years or above, allowing a deduction of up to ₹50,000 on interest earned from savings, fixed deposits, and post office deposits. Senior citizens cannot claim both sections simultaneously—only 80TTB applies to them.
10. Can rent paid without HRA still qualify for deduction under Chapter VI-A? Yes, taxpayers who do not receive House Rent Allowance (HRA) can still claim rent deductions under Section 80GG. The deduction is the least of ₹5,000 per month, 25% of total income, or the amount by which rent exceeds 10% of income. To avail of this benefit, the taxpayer must not own any residential property and must submit Form 10BA confirming rent payment. This provision benefits self-employed individuals and salaried employees not covered under HRA.
11. What documents are required to claim deductions under Chapter VI-A during ITR filing? Taxpayers must maintain documentary proof for each deduction claimed under Chapter VI-A. These include:
Investment proof for Section 80C (PPF, ELSS, insurance premium receipts, etc.)
NPS contribution statements for 80CCD
Medical insurance premium receipts for 80D
Disability certificates for 80DD and 80U
Interest certificates from banks for 80E, 80TTA, or 80TTB
Donation receipts for 80G with registration numbers These documents help substantiate claims in case of scrutiny or verification by the tax department.
12. How does TaxBuddy help in claiming Chapter VI-A deductions accurately? TaxBuddy’s AI-based tax filing system automatically identifies eligible deductions from uploaded Form 16, AIS, and financial records. It ensures that sections like 80C, 80D, and 80G are correctly applied without exceeding permissible limits. Users can also consult tax experts through the expert-assisted plan for personalized advice on regime selection and deduction optimization. With automated validation, real-time data checks, and seamless integration, TaxBuddy ensures an accurate, compliant, and stress-free tax filing experience.
