Under the old tax regime, you can reduce taxable income via: Section 80C (investments/specified payments up to ₹1.5 lakh), Section 80D (health insurance & preventive check-ups within age-based limits), and Section 80G (eligible donations—50%/100% deduction, sometimes capped at 10% of Adjusted GTI). These are not available under the new tax regime (115BAC). (Income Tax India)
Why this matters
These three sections are India’s most-used tax breaks for salaried and HNI investors. Knowing the limits, eligible instruments, and documentation helps you plan cash flows, pick the right products (PPF, ELSS, medical insurance), and make compliant, high-impact donations. Also note the regime choice: most Chapter VI-A deductions (including 80C/80D/80G) don’t apply in the default new regime. (Income Tax India)
80C: Investments & Specified Payments (Limit ₹1.5 lakh)
What you can claim (illustrative):
- PPF, Sukanya Samriddhi, 5-yr tax-saving bank FDs, NSC
- Employee/Voluntary PF, Life insurance premium (self, spouse, children)
- ELSS (tax-saving mutual funds), Principal repayment of housing loan, Tuition fees (up to 2 children), etc.
Overall ceiling: The combined deduction under 80C + 80CCC + 80CCD(1) is ₹1,50,000 in a financial year (old regime). (Income Tax India)
Quick formula to estimate tax saved:
Tax Saved = (Amount claimed under 80C) × (Your slab rate under old regime)
⚠️ New regime users cannot claim 80C (except employer NPS 80CCD(2) and a few special items). (Income Tax India)
80D: Health Insurance & Preventive Check-ups
Who & how much (old regime):
- Self + Spouse + Dependent Children: Up to ₹25,000
- Parents (additional): Up to ₹25,000; ₹50,000 if parent is 60+
- Senior citizens (60+) without health insurance: Medical expenditure up to ₹50,000
- Preventive health check-up: Up to ₹5,000 within the above limits
- Payment modes: Insurance not in cash; check-ups can be paid in cash. (Income Tax India, Income Tax India)
Compliance tip in ITR: Total preventive check-up across all fields must not exceed ₹5,000. (Income Tax India)
⚠️ New regime: 80D is not allowed. (Income Tax India)
80G: Donations to Approved Funds/Institutions
Deduction rates & caps (old regime):
- 100% deduction (no limit) – e.g., certain national funds
- 50% deduction (no limit) – specified funds
- 100% deduction (with limit) – capped to 10% of Adjusted Gross Total Income (AGTI)
- 50% deduction (with limit) – capped to 10% of AGTI
The official 80G calculator shows these four buckets and applies the 10% of AGTI cap where relevant. Cash donations above ₹2,000 are not eligible (80G(5D)). (Income Tax India)
Adjusted GTI (for 10% cap): Compute as per law/ITR utility (i.e., your Gross Total Income adjusted for certain incomes/deductions before applying 80G). The CBDT tool applies the limit automatically in ITR. (Income Tax India)
⚠️ New regime: 80G is not allowed. (Income Tax India)
Old vs New Tax Regime—at a glance
| Section | Old Regime | New Regime (115BAC) |
|---|---|---|
| 80C (incl. 80CCC, 80CCD(1)) | ✅ Up to ₹1.5 lakh (combined) | ❌ Not allowed |
| 80D | ✅ (₹25k/₹50k + check-up ₹5k within limits) | ❌ Not allowed |
| 80G | ✅ (50%/100%; with/without 10% AGTI cap) | ❌ Not allowed |
(Income Tax India, Income Tax India)
Worked examples
1) 80D (Non-senior + Parents 60+)
- You pay ₹22,000 (family premium) + ₹3,000 (check-up).
- Parents (both 60+) premium ₹36,000.
- Claimable = ₹25,000 (self/family cap) + ₹36,000 (parents ≤₹50,000) = ₹61,000. (Check-up is part of ₹25k cap.) (Income Tax India)
2) 80G with qualifying limit
- Adjusted GTI = ₹10,00,000; Donation to a 50% (with limit) category = ₹2,00,000.
- 10% of AGTI = ₹1,00,000 → Eligible base = ₹1,00,000 → Deduction @50% = ₹50,000. (Income Tax India)
How to claim correctly (ITR pointers)
- Choose regime deliberately. If you want 80C/80D/80G, opt for old regime in your return; ITR validation blocks these under the new regime. (Income Tax India)
- Match schedules:
- 80C/80CCD(1) totals must not exceed ₹1.5 lakh. (Income Tax India)
- 80D preventive check-up ≤ ₹5,000 across fields. (Income Tax India)
- 80G details must be filled in Schedule 80G, and calculator’s eligible amount must match your claim. (Income Tax India)
- Payment modes & proofs:
- 80D premiums non-cash; check-ups may be cash. (Income Tax India)
- 80G donations > ₹2,000 must be non-cash; keep receipts with trust’s Name, PAN, 80G approval. (Income Tax India)
FAQs
Is ELSS under 80C still useful?
Yes—if you opt for the old regime, ELSS qualifies within the ₹1.5 lakh ceiling. (Not allowed in new regime.) (Income Tax India)