Deductions Under Income Tax Act 2025#
Available Deductions in New Regime#
Under the new tax regime of Income Tax Act 2025, the following deductions are available:
Key Deductions#
| Section | Description | Limit |
|---|---|---|
| Section 30 | Life Insurance Premium | ₹1,50,000 |
| Section 31 | Provident Fund | ₹1,50,000 |
| Section 32 | NPS Contribution | ₹50,000 |
| Section 33 | Health Insurance | ₹25,000-50,000 |
| Section 34 | Education Loan Interest | No limit |
| Section 35 | Donations (80G) | As per provisions |
| Section 36 | Home Loan Interest | ₹2,00,00 |
Standard Deduction#
- Salaried Employees: ₹75,000
- Pensioners: ₹75,000
Which Regime to Choose?#
- New Regime: Limited deductions but lower rates
- Old Regime: All deductions available with higher rates
Claiming Deductions#
- Submit proofs to employer (for salary)
- Claim in ITR filing
- Maintain investment documents