✅ Top 10 Income Tax Deductions You Can Claim to Save Maximum Tax in 2025 (80C to 80U Explained)
Simple Tax-Saving Guide by CA Shiwali & Co., Chartered Accountants in Delhi
Every year, millions of taxpayers in India end up paying more tax than necessary simply because they don’t know what deductions they can claim.
The good news?
The Income Tax Act offers several powerful deductions — especially under Section 80C to 80U — that help you legally reduce your tax burden.
In this guide, we explain the Top 10 tax deductions that will help you save maximum tax in 2025.
⭐ 1️⃣ Section 80C – Save Up to ₹1,50,000
This is India’s most popular tax-saving section.
You can claim up to ₹1,50,000 for investments like:
PPF
Life Insurance Premium (LIC)
ELSS Mutual Funds
Tax-saving FD (5-year lock-in)
EPF / VPF
Sukanya Samriddhi Yojana
National Savings Certificate (NSC)
Tuition fees for children
Home loan principal repayment
👉 Maximum deduction: ₹1,50,000
⭐ 2️⃣ Section 80CCD(1B) – Extra ₹50,000 Deduction for NPS
If you invest in the National Pension System (NPS), you get an additional deduction of:
👉 Up to ₹50,000 (over and above 80C)
This is excellent for salaried individuals choosing the old tax regime.
⭐ 3️⃣ Section 80D – Medical Insurance Deduction
You can claim deductions for medical insurance as follows:
₹25,000 for self, spouse & children
₹25,000 for parents
₹50,000 for senior citizen parents
👉 Maximum deduction: ₹75,000 or ₹1,00,000 (if you and your parents are senior citizens)
Also includes preventive health checkups (₹5,000).
⭐ 4️⃣ Section 24(b) – Home Loan Interest Deduction
For self-occupied house property:
👉 Deduction up to ₹2,00,000 on home loan interest
For rented-out property:
Full interest is allowed (no upper limit).
⭐ 5️⃣ Section 80E – Education Loan Interest
Interest paid on education loan for:
✔ Higher education
✔ In India or abroad
✔ For self, spouse, children
👉 No maximum limit
👉 Available for 8 years
⭐ 6️⃣ Section 80TTA / 80TTB – Savings Interest Deduction
80TTA
For individuals below 60:
👉 Deduction up to ₹10,000 on savings interest.
80TTB
For senior citizens:
👉 Deduction up to ₹50,000.
⭐ 7️⃣ Section 80G – Donations to Charity
Donations to charitable institutions, trusts, NGOs, and government funds qualify for deduction:
50% or 100% deduction
Depending on the category of institution
Examples:
PM National Relief Fund
Approved NGOs
Charitable hospitals
⭐ 8️⃣ Section 80GG – Rent Paid (If No HRA Received)
If you don’t get HRA but pay rent, you can claim this deduction.
Allowed for:
✔ Self-employed
✔ Salaried with no HRA
✔ Freelancers
👉 Maximum deduction: ₹60,000 per year
⭐ 9️⃣ Section 80U – For Individuals with Disabilities
Fixed deduction (no proofs needed):
₹75,000 for persons with disability
₹1,25,000 for severe disability
⭐ 🔟 Section 80DDB – Medical Expenses for Specific Diseases
For treatment of specified diseases (like cancer, chronic kidney disease):
₹40,000 (below 60 years)
₹1,00,000 (senior citizens)
Expenses must be certified by a specialist doctor.
📌 Bonus Tax Savings
Standard Deduction – ₹50,000
Automatically available for salaried individuals & pensioners.
HRA Exemption
Available for salaried employees receiving HRA.
⭐ Who Should Use These Deductions?
These tax benefits are ideal for:
✔ Salaried individuals
✔ Freelancers
✔ Business owners
✔ Senior citizens
✔ NRIs (select sections)
Most taxpayers miss 2–3 major deductions — resulting in extra tax paid unnecessarily.
⚠️ Common Mistakes People Make
❌ Forget to claim 80C investments
❌ Don’t claim NPS 80CCD(1B)
❌ Miss home loan interest (24b)
❌ Don’t claim 80G donations
❌ Use wrong ITR form
❌ Don’t match AIS/26AS with return
🎯 Should You Use Old Tax Regime or New Tax Regime?
If you want to claim deductions:
👉 Choose Old Tax Regime
If you want simple, no-deduction filing:
👉 Choose New Tax Regime
📞 Want to Save Maximum Tax This Year?
At CA Shiwali & Co., we help you:
✔ Choose the best tax-saving options
✔ File your ITR correctly
✔ Maximize deductions legally
✔ Avoid notices & mistakes
✔ Get faster refunds
📍 Chartered Accountants in New Delhi, South Delhi
🌐 Website: www.cashiwali.com
📞 Call/WhatsApp: 9266032777
Let experts save your tax the right way.
