Tax Deductions Checklist AY 2026-27: Section 80C, 80D, 80E, 80G One-Page Summary
Filing your Income Tax Return (ITR) for Assessment Year 2026-27? The single most effective way to reduce your tax liability is to claim every deduction you are eligible for. But with multiple sections, varying limits, and different rules for old and new tax regimes, it is easy to miss valuable tax savings.
This one-page summary consolidates all major tax deductions under Chapter VI-A (Sections 80C to 80U) into a single, easy-to-reference checklist. Bookmark this page — you will need it when filing your ITR.
Quick Reference: Tax Deductions at a Glance
| Section | Purpose | Max Deduction | New Regime |
|---|---|---|---|
| 80C | Investments (PPF, ELSS, LIC, etc.) | Rs 1,50,000 | No |
| 80CCD(1B) | NPS Additional Contribution | Rs 50,000 | No |
| 80D | Health Insurance Premiums | Rs 25,000–Rs 1,00,000 | No |
| 80E | Education Loan Interest | No Limit | No |
| 80G | Donations to Charitable Funds | Varies (50% or 100%) | No |
| 80TTA | Savings Account Interest | Rs 10,000 | No |
| 80TTB | Interest on Deposits (Senior Citizens) | Rs 50,000 | No |
| 80U | Disability (Individual) | Rs 75,000 / Rs 1,25,000 | Yes |
| 80DD | Disability (Dependent) | Rs 75,000 / Rs 1,25,000 | No |
| 24(b) | Home Loan Interest | Rs 2,00,000 | No |
Important: Most deductions under Chapter VI-A are available only under the Old Tax Regime. If you opt for the New Tax Regime, you lose access to these deductions in exchange for lower slab rates.
Section 80C: The Core Tax-Saving Basket (Up to Rs 1.5 Lakh)
Section 80C allows individuals and HUFs to claim a deduction of up to Rs 1,50,000 on eligible investments and expenses.
Eligible Investments and Expenses
| Category | Examples |
|---|---|
| Provident Funds | PPF, EPF (employee contribution), VPF |
| Life Insurance | Premiums paid for self, spouse, children |
| Equity-Linked Savings Scheme (ELSS) | ELSS mutual funds (lock-in: 3 years) |
| Tax-Saving Fixed Deposits | 5-year FD with banks or post offices |
| National Savings Certificate (NSC) | Post office savings certificate |
| Tuition Fees | For children's full-time education (up to 2 children) |
| Home Loan Principal | Principal repayment of housing loan |
| Sukanya Samriddhi Yojana (SSY) | Savings scheme for girl child |
Key Points
- The Rs 1.5 lakh limit is combined across all investments under Sections 80C, 80CCC, and 80CCD(1)
- Available only under the Old Tax Regime
- New Section (ITA 2025): Section 80C → Clause 123
Section 80D: Health Insurance Premiums (Up to Rs 1 Lakh)
Section 80D allows deduction on health insurance premiums paid for self, family, and parents.
Deduction Limits
| Scenario | Self + Family | Parents | Total |
|---|---|---|---|
| All below 60 years | Rs 25,000 | Rs 25,000 | Rs 50,000 |
| Self below 60, Parents senior | Rs 25,000 | Rs 50,000 | Rs 75,000 |
| Self senior (60+), Parents below 60 | Rs 50,000 | Rs 25,000 | Rs 75,000 |
| All senior (60+) | Rs 50,000 | Rs 50,000 | Rs 1,00,000 |
Key Points
- Preventive health check-ups covered up to Rs 5,000 (within overall limit)
- Senior citizens without health insurance can claim up to Rs 50,000 on actual medical expenses
- Payment must be made through non-cash modes (cheque, bank transfer, UPI, etc.)
- Available only under the Old Tax Regime
- New Section (ITA 2025): Section 80D → Clause 126
Section 80E: Education Loan Interest (No Upper Limit)
Section 80E provides a deduction for interest paid on education loans taken for higher education of self, spouse, children, or a relative for whom the taxpayer is the legal guardian.
Key Features
| Feature | Detail |
|---|---|
| Deduction Amount | Full interest paid — no upper limit |
| Eligible Loans | For higher education (full-time courses) |
| Loan Source | Financial institution or approved charitable institution |
| Deduction Period | For 8 consecutive assessment years, starting from the year interest is first paid |
| Tax Regime | Only under Old Tax Regime |
Example
| Particulars | Amount |
|---|---|
| Annual Interest Paid | Rs 1,20,000 |
| Deduction under Section 80E | Rs 1,20,000 |
Unlike Section 80C (capped at Rs 1.5 lakh) or Section 80D (capped at Rs 1 lakh), Section 80E has no ceiling.
New Section (ITA 2025): Section 80E → Clause 129
Section 80G: Donations to Charitable Funds (50% or 100%)
Section 80G allows deduction for donations made to eligible charitable institutions, trusts, and government relief funds.
Key Rules
| Rule | Detail |
|---|---|
| Deduction Type | 100% or 50% of donation, depending on the fund |
| Qualifying Limit | For some donations, capped at 10% of Adjusted Gross Total Income (AGTI) |
| Cash Donations | Only up to Rs 2,000 in cash qualify |
| Documentation | Must have Form 10BE issued by the recipient institution |
| Payment Mode | Donations above Rs 2,000 must be through banking/digital channels |
| Tax Regime | Only under Old Tax Regime |
Common Eligible Donations
- Prime Minister's National Relief Fund (PMNRF) — 100% deduction
- PM CARES Fund — 100% deduction
- National Defence Fund — 100% deduction
- Approved charitable trusts and NGOs — 50% deduction (with 10% AGTI cap)
New Section (ITA 2025): Section 80G → Clause 133
Section 80TTA & 80TTB: Interest on Deposits
Section 80TTA (Savings Account Interest)
| Feature | Detail |
|---|---|
| Eligible Taxpayers | Individuals and HUFs (non-senior citizens) |
| Deduction Limit | Rs 10,000 on interest from savings accounts |
| Tax Regime | Only under Old Tax Regime |
Section 80TTB (Senior Citizens – Interest on Deposits)
| Feature | Detail |
|---|---|
| Eligible Taxpayers | Senior citizens (60 years and above) |
| Deduction Limit | Rs 50,000 on interest from all deposits (savings, FDs, RDs, post office) |
| Tax Regime | Only under Old Tax Regime |
Section 80U & 80DD: Disability Deductions
Section 80U (Individual with Disability)
| Feature | Detail |
|---|---|
| Eligible Taxpayers | Resident individuals with disability |
| 40% to 79% disability | Rs 75,000 deduction |
| 80% or more (severe disability) | Rs 1,25,000 deduction |
| Documentation | Certificate from a medical authority |
| Tax Regime | Available under both Old and New Tax Regimes |
Section 80DD (Dependent with Disability)
| Feature | Detail |
|---|---|
| Eligible Taxpayers | Individuals or HUFs with a dependent with disability |
| 40% to 79% disability | Rs 75,000 deduction |
| 80% or more (severe disability) | Rs 1,25,000 deduction |
| Dependent | Spouse, children, parents, siblings |
| Tax Regime | Only under Old Tax Regime |
Old vs New Tax Regime: What Changes?
The choice between Old and New Tax Regimes is the single most important decision when filing your ITR.
| Aspect | Old Tax Regime | New Tax Regime |
|---|---|---|
| Tax Slabs | Higher rates | Lower rates |
| Chapter VI-A Deductions | Yes | No |
| HRA Exemption | Yes | No |
| LTA Exemption | Yes | No |
| Section 24(b) Home Loan | Yes | No |
| 80TTB (Senior Citizens) | Yes | No |
| 80U (Disability) | Yes | Yes |
| Standard Deduction | Rs 50,000 | Rs 75,000 |
Bottom Line: If you have significant investments, insurance premiums, donations, or home loan interest, the Old Tax Regime is likely more beneficial. If you have minimal deductions, the New Tax Regime may offer better tax savings.
Summary: One-Page Deductions Checklist
| Section | Purpose | Max Deduction | New Regime |
|---|---|---|---|
| 80C | Investments (PPF, ELSS, LIC, etc.) | Rs 1,50,000 | No |
| 80CCD(1B) | NPS Additional Contribution | Rs 50,000 | No |
| 80D | Health Insurance Premiums | Rs 25,000–Rs 1,00,000 | No |
| 80E | Education Loan Interest | No Limit | No |
| 80G | Donations to Charitable Funds | 50% or 100% | No |
| 80TTA | Savings Account Interest | Rs 10,000 | No |
| 80TTB | Interest on Deposits (Senior Citizens) | Rs 50,000 | No |
| 80U | Disability (Individual) | Rs 75,000 / Rs 1,25,000 | Yes |
| 80DD | Disability (Dependent) | Rs 75,000 / Rs 1,25,000 | No |
| 24(b) | Home Loan Interest | Rs 2,00,000 | No |
Where Tax Garden Helps
Filing your ITR and claiming every eligible deduction requires careful documentation and accurate reporting. A single missed deduction can cost you thousands in additional tax.
Tax Garden CAs help you:
- Identify every deduction you are eligible for
- Calculate your tax liability under both old and new regimes
- File your ITR accurately and on time
- Claim refunds and respond to tax notices
- Stay compliant with the latest tax laws
Frequently Asked Questions
Q: Is Section 80C deduction available under the New Tax Regime?
A: No. Section 80C is not available under the New Tax Regime.
Q: What is the maximum deduction under Section 80C for AY 2026-27?
A: Rs 1,50,000 per financial year.
Q: Can I claim both Section 80C and Section 80D?
A: Yes. They are separate deductions with separate limits.
Q: Is there a limit on Section 80E deduction?
A: No. The full interest paid on an eligible education loan is deductible without any upper limit.
Q: Can I claim Section 80G deduction if I donate in cash?
A: Only up to Rs 2,000 in cash qualifies. Donations above Rs 2,000 must be through banking channels.
Q: What is the new section number for 80C under the Income Tax Act 2025?
A: Section 80C → Clause 123
Q: What is the new section number for 80D under the Income Tax Act 2025?
A: Section 80D → Clause 126
Q: Is Section 80U available under the New Tax Regime?
A: Yes. Section 80U (disability deduction for individuals) is available under both regimes.
Q: Should I choose Old or New Tax Regime for AY 2026-27?
A: It depends on your deductions and income level. Use an ITR calculator to compare both regimes and choose the one that results in lower tax.
Sources: Income Tax Department (incometaxindia.gov.in); Zee Business; Mint; CNBC TV18; News18; BW Businessworld; Tax Garden. Verify current rates, limits, and procedures on incometaxindia.gov.in before acting, as rules may be updated periodically. This article is general information on tax deductions and not a substitute for professional advice.
