Tax Deductions: 80C, 80D & Beyond

Note: These deductions are primarily for the Old Tax Regime. The New Regime has removed most of them.

1. Section 80C (The Big One)

Limit: ₹1.5 Lakhs per year. Most popular investments fall here.

• EPF (Employee Provident Fund): Automatically deducted from salary.
• PPF (Public Provident Fund): 15-year lock-in, tax-free returns.
• ELSS (Equity Linked Savings Scheme): Mutual Funds with 3-year lock-in.
• LIC Premium: Life Insurance premiums.
• Principal Repayment of Home Loan.
• Sukanya Samriddhi Yojana (For girl child).
• Tuition Fees (For children).

2. Section 80D (Health Insurance)

Limit:

• Self + Family: ₹25,000.
• Parents (Senior Citizens): ₹50,000.
• Preventive Health Checkup: ₹5,000 (included in the limit).

Max Benefit: ₹75,000 (Self + Senior Parents).

3. Section 80CCD(1B) (NPS)

Limit: Additional ₹50,000.

• Over and above the ₹1.5L of 80C.
• Invest in National Pension System (NPS) Tier 1.

4. Section 24(b) (Home Loan Interest)

Limit: ₹2 Lakhs.

• Interest paid on Home Loan for Self-Occupied property.
• Loss from House Property can be set off against Salary income.

5. Other Important Sections

• 80E: Interest on Education Loan. (No upper limit! For 8 years).
• 80G: Donations to Charity/PM Relief Fund (50% or 100% deduction).
• 80TTA: Interest on Savings Account (Max ₹10,000).
• 80TTB: Interest for Senior Citizens (Max ₹50,000).

Summary Table

7-Day Action Plan

Day 1: Check your Payslip. How much EPF is already deducted? Subtract that from ₹1.5L.
Day 2: If you have a gap in 80C, start an ELSS SIP. (Lowest lock-in, high returns).
Day 3: Buy Health Insurance for Parents. It saves tax and protects wealth.
Day 4: Open an NPS account if you want to save that extra ₹50k tax.
Day 5: Collect proofs (Receipts) to submit to HR in Jan/Feb.
Day 6: Compare Old Regime vs New Regime. If your total deductions < ₹3.75 Lakhs, New Regime might be better.
Day 7: Don't buy useless insurance policies just to save tax. Returns matter more than tax.

Quiz

💡 Final Wisdom: "A penny saved is a penny earned." But don't spend a rupee to save 30 paise tax. Invest wisely.