Income-Tax Saving under Chapter VI-A — Sections 80C, 80CCD, 80D, 80DD, 80E, 80EE/80EEA, 80G, 80GG, 80TTA/80TTB and 80U Explained with Limits and Examples
Video Explanation & Insights
Income-tax saving: every Chapter VI-A deduction explained (for taxpayers and students)
5 videos on this topic
Where deductions fit
Income is computed under five heads — salary, house property, capital gains, business or profession, and other sources — and their total is gross total income. Chapter VI-A deductions are subtracted from that total to arrive at taxable income, and they are available only under the old tax regime; the new regime trades them for lower slabs, and from FY 2025-26 charges no tax up to ₹12 lakh (₹12.75 lakh for salaried with the standard deduction). Compare both before investing for tax. Most sections are for individuals and Hindu Undivided Families; companies, LLPs and firms get none of them.
80C, 80CCC, 80CCD — the ₹1.5 lakh basket and the NPS extra
| Section | What qualifies | Limit | Watch-out |
|---|---|---|---|
| 80C | Life insurance premium, PPF, EPF (employee share), Sukanya Samriddhi, NSC, 5-year tax-saver FD, ELSS tax-saver mutual funds, ULIP, tuition fees of up to two children, home-loan principal, stamp duty and registration on a house | ₹1.5 lakh combined with 80CCC and 80CCD(1) | Only ELSS counts among mutual funds — not index, large-cap or other funds. Your own college fees do not count; your children's do. Investing beyond ₹1.5 lakh gives no further deduction |
| 80CCC | Pension / annuity plans of insurers | Within the same ₹1.5 lakh | Rarely leaves room once 80C is full |
| 80CCD(1) | Own contribution to NPS / Atal Pension Yojana | Within the same ₹1.5 lakh (10% of salary / 20% of gross income) | Same basket |
| 80CCD(1B) | Additional own NPS contribution | ₹50,000 over and above the ₹1.5 lakh | Open an NPS account at any bank; for tax planning contribute exactly ₹50,000. The most under-used deduction |
| 80CCD(2) | Employer's contribution to NPS | 10% of salary (14% for government; 14% under the new regime for all employers) | Available even in the new regime |
80D, 80DD, 80DDB, 80U — medical and disability
| Section | What | Limit | Example from the video |
|---|---|---|---|
| 80D | Health insurance premium for self, spouse, children; separately for parents; preventive health check-up ₹5,000 within the limit | ₹25,000 for the family; ₹25,000 for parents, or ₹50,000 if either parent is a senior citizen (60+); ₹50,000 for self if senior | ₹24,000 for self and spouse + ₹30,000 for parents under 60 = ₹54,000 paid but ₹50,000 allowed (₹24,000 + ₹25,000 cap + ₹1,000 room lost); with senior-citizen parents the parents' limit is ₹50,000 |
| 80DD | Maintenance and medical treatment of a dependant with disability (spouse, children, parents, siblings; HUF member) | Flat ₹75,000 (disability 40%–80%); ₹1.25 lakh (severe, 80%+) | Flat amounts regardless of actual expense; the dependant must not have independent income; government-doctor certificate needed |
| 80DDB | Treatment of specified diseases (cancer, kidney failure, neurological and others) for self or dependant | ₹40,000; ₹1 lakh for senior citizens | Prescription from a specialist; reduced by insurance reimbursements |
| 80U | Taxpayer's own disability | Flat ₹75,000 / ₹1.25 lakh | Same certificate rules as 80DD; claim 80U for yourself, 80DD for a dependant — not both for the same person |
80E, 80EE, 80EEA, 80G, 80GG, 80TTA, 80TTB
| Section | What | Limit | Notes |
|---|---|---|---|
| 80E | Interest on an education loan for self, spouse, children or a student you are guardian of — higher education in India or abroad | No monetary limit; for 8 assessment years from the year repayment begins | Interest only — never the principal; take the bank's interest certificate for 1 April–31 March |
| 80EE | Interest on a first home loan sanctioned 1 April 2016 – 31 March 2017 (property ≤ ₹50 lakh, loan ≤ ₹35 lakh) | ₹50,000 a year, over and above section 24(b)'s ₹2 lakh | Legacy loans only |
| 80EEA | Interest on an affordable-house loan sanctioned 1 April 2019 – 31 March 2022 (stamp value ≤ ₹45 lakh) | ₹1.5 lakh a year, over and above section 24(b) | First-time buyer; not claiming 80EE |
| 80G | Donations to approved funds and institutions | 100% or 50%, with or without a qualifying limit of 10% of adjusted gross total income — four categories | Cash donations above ₹2,000 do not qualify; the donee's 80G registration and Form 10BE certificate are required |
| 80GG | Rent paid by a taxpayer who gets no HRA and owns no house at the place of work | Least of ₹5,000 a month (₹60,000 a year), 25% of adjusted total income, or rent paid minus 10% of adjusted total income | File Form 10BA; the ₹60,000 ceiling binds almost always |
| 80TTA | Interest on savings accounts (bank, post office, cooperative) | ₹10,000 | For individuals and HUFs below 60; FD interest not covered |
| 80TTB | Interest on savings, FDs and recurring deposits for senior citizens | ₹50,000 | Replaces 80TTA for those 60 and above — the video's 'elder brother' |
Getting the most from the chapter
- •Compute tax under both regimes first; deductions worth less than the slab advantage of the new regime are not worth locking money for.
- •Fill 80C to exactly ₹1.5 lakh (EPF and home-loan principal often do most of it), then ₹50,000 in NPS under 80CCD(1B), then 80D for the whole family including parents.
- •Keep proofs the way the AIS will test them: premium receipts, PPF / ELSS statements, tuition receipts, bank interest and loan certificates, disability certificates, Form 10BE for donations.
- •Salaried taxpayers: choose the regime in the return each year (business taxpayers can switch back only once); declare investments to the employer to avoid excess TDS.
Tax-saving deductions: questions we are asked
No — except the employer's NPS contribution under 80CCD(2) and a few others. The new regime relies on lower slabs and, from FY 2025-26, zero tax up to ₹12 lakh.
₹1.5 lakh, shared with 80CCC and 80CCD(1). Investing more gives nothing extra.
₹50,000 in NPS under 80CCD(1B), health premiums under 80D, and where applicable 80E, 80EEA, 80G, 80GG.
Yes — ₹25,000, or ₹50,000 if either parent is 60 or above, in addition to your own family's ₹25,000.
No — only the interest, under 80E, without any ceiling, for eight years.
80DD is for a dependant with disability; 80U is for the taxpayer's own disability. Both give flat ₹75,000 or ₹1.25 lakh.
Only ELSS tax-saver funds with a three-year lock-in — not ordinary equity, index or debt funds.