Section 80C, 80D & the Tax Deductions That Matter

By the MyTaxLocker Team · Updated 11 June 2026

Deductions are how you legally lower your taxable income under the Old regime. Here are the ones most salaried taxpayers actually use — and an important catch: most of them don't apply if you choose the New regime.

Section 80C — the big ₹1.5 lakh bucket

Section 80C lets you deduct up to ₹1,50,000 a year for a wide range of investments and payments, including EPF and PPF, ELSS mutual funds, life-insurance premiums, the principal repayment on a home loan, 5-year tax-saving fixed deposits, NSC, Sukanya Samriddhi, and children's tuition fees. The ₹1.5 lakh is a combined ceiling across all of them, not per item.

Section 80CCD(1B) — an extra ₹50,000 for NPS

Over and above 80C, you can claim up to ₹50,000 for your own contribution to the National Pension System under 80CCD(1B). Separately, your employer's NPS contribution under 80CCD(2) is one of the few deductions that survives even under the New regime.

Section 80D — health insurance

Premiums for health insurance are deductible: typically up to ₹25,000 for yourself and family, rising to ₹50,000 where a senior citizen is covered, with a further amount for insuring your parents. A small preventive health check-up amount fits within these limits.

Other deductions worth knowing

• 80E — interest on an education loan (no upper cap, for a fixed number of years).
• 80G — eligible donations (some at 100%, some at 50%, some subject to a qualifying limit).
• 80GG — rent paid when you don't receive HRA.
• 80TTA / 80TTB — interest on savings (and, for seniors, deposits).

The New-regime catch

Most of these — 80C, 80CCD(1B), 80D, HRA, and so on — are available only under the Old regime. The New regime trades them for lower slab rates. So before you total up your deductions, it's worth checking which regime leaves you better off overall.