Deductions from Gross Total Income under the Income-tax Act
Chapter VI-A of the Income-tax Act, 1961 provides deductions from gross total income for specified investments, insurance, medical expenses, education loans, donations and other eligible payments. The deduction available depends on the taxpayer, statutory conditions and the tax regime selected.
How deductions from gross total income work
Gross total income is determined under the applicable heads of income and after permissible set-off of losses, before deductions under Chapter VI-A. Sections 80A and 80AB set out important restrictions: aggregate Chapter VI-A deductions cannot exceed gross total income, and deductions linked to specified income are calculated with reference to the qualifying net income included in gross total income, subject to the relevant provision.
Not every deduction is restricted to individuals or Hindu undivided families (HUFs). Eligibility varies by section. Certain deductions require actual payment, supporting documents, a qualifying recipient or investment, or filing the return by the prescribed due date. The section 80C, 80CCC and 80CCD(1) combined limit is Rs. 1,50,000, not the historical Rs. 1,00,000.
Major deductions under sections 80C to 80U
| Section | Deduction category | Indicative ceiling or rule | Who can claim |
|---|---|---|---|
| 80C | Specified investments and payments | Up to Rs. 1,50,000 combined with sections 80CCC and 80CCD(1) | Individuals and HUFs; old regime |
| 80CCC | Certain pension or annuity contributions | Within the combined Rs. 1,50,000 ceiling | Eligible individuals; old regime |
| 80CCD(1) | Employee or self-employed NPS contributions | Within the combined Rs. 1,50,000 ceiling; additional percentage conditions | Eligible individuals; old regime |
| 80CCD(1B) | Additional qualifying NPS contribution | Up to Rs. 50,000 over the combined ceiling | Eligible individuals; old regime |
| 80CCD(2) | Employer contributions to eligible pension schemes | Subject to applicable percentage of salary; generally available in both regimes | Eligible salaried individuals |
| 80D | Health insurance premiums and specified medical expenses | Limits vary by age and eligible persons | Eligible individuals and HUFs; old regime |
| 80DD | Maintenance and medical care of a dependent with disability | Rs. 75,000 or Rs. 1,25,000 for severe disability, subject to conditions | Eligible resident individuals and HUFs; old regime |
| 80DDB | Specified disease treatment expenses | Up to Rs. 40,000 or Rs. 1,00,000 for senior citizens, subject to conditions | Eligible resident individuals and HUFs; old regime |
| 80E | Interest on qualifying higher education loan | Eligible interest, subject to the prescribed period and conditions | Eligible individuals; old regime |
| 80EE | Interest on certain housing loans | Up to Rs. 50,000, subject to historic loan sanction dates | Eligible individuals; old regime |
| 80EEA | Interest on certain affordable housing loans | Up to Rs. 1,50,000, subject to historic loan sanction dates | Eligible individuals; old regime |
| 80G | Donations to eligible funds and institutions | 50% or 100%, sometimes subject to qualifying limits | Eligible taxpayers; generally old regime |
| 80GG | Rent paid where HRA is not received | Least of statutory formula amounts | Eligible individuals; old regime |
| 80TTA / 80TTB | Specified savings interest / senior citizen deposit interest | Rs. 10,000 / Rs. 50,000, respectively, subject to conditions | Eligible taxpayers; old regime |
| 80U | Resident individual with disability | Rs. 75,000 or Rs. 1,25,000 for severe disability | Eligible resident individuals; old regime |
Limits shown are general statutory reference points under the Income-tax Act, 1961 and are subject to eligibility, exclusions, tax regime and assessment-year rules. This is not an exhaustive list of Chapter VI-A deductions.
Old tax regime and new tax regime
Old tax regime
Eligible taxpayers who validly opt for the old regime can generally claim applicable deductions such as sections 80C, 80D, 80E, 80G, 80TTA and 80TTB, subject to conditions. The benefit should be compared against the applicable slab rates and rebates.
New tax regime
Under section 115BAC, many traditional exemptions and deductions are disallowed. Some specifically permitted deductions, including section 80CCD(2), remain available subject to conditions. A taxpayer should not assume that a deduction listed in Chapter VI-A can be claimed in the new regime.
Documents and conditions to check
- Confirm the assessment year, applicable legislation and tax regime.
- Check whether the deduction is available to the taxpayer category concerned.
- Verify statutory ceilings, payment dates, qualifying institutions and other eligibility conditions.
- Keep insurance receipts, investment statements, loan interest certificates, disability certificates and donation documentation, as relevant.
- Ensure the deduction is reported correctly in the income-tax return and that any mandatory return-filing deadlines are met.
Detailed articles on individual deductions
For further information on specific provisions, see the following related guides:
- Deductions Not allowed from Gross Total Income but permissible Under Section 80-C to 80 U of Income Tax Act
- Basic law of deductions from gross total income - Sections 80A, 80AB, 80C of Income Tax Act
- Permissible deductions under Section 80C of Income Tax Act
- Deduction against Medical insurance premium paid u/s 80D of Income Tax Act
- Medical treatment and maintenance expenses of dependent disabled person- Deduction u/s 80DD of Income Tax Act
- Medical treatment expenses for specified disease - Deduction u/s 80DDB of Income Tax Act
- Interest paid on Education loan - Deduction u/s 80E of Income Tax Act
- Interest paid on loan taken for residential house property : Deduction u/s 80EE of Income Tax Act
Frequently asked questions
Can deductions exceed gross total income?
No. Section 80A restricts aggregate Chapter VI-A deductions to gross total income; they cannot create a loss.
Is section 80C available under the new tax regime?
Generally no. Section 80C is normally claimed by eligible taxpayers under the old tax regime, subject to statutory conditions.
Are all deductions limited to individuals and HUFs?
No. Each provision specifies the eligible class of taxpayer. Some deductions are available to companies, firms or other eligible entities.
Where can the official provisions be checked?
Consult the Income Tax Department and the India Code legislative database for authoritative statutory texts and updates.
Editorial note: This guide is general information, not a substitute for checking the legislation, rules, notifications and applicable assessment-year instructions.