ITR Filing 2025: Have You Chosen Old Tax Regime? Don’t Forget To Claim These Five Deductions | Personal Finance News
New Delhi: If you’ve chosen the old tax regime, it’s crucial not to overlook the wide range of deductions available, which can significantly reduce your taxable income. These deductions cover investments, health insurance premiums, home loan interest, and more, helping you minimize your tax burden and maximize your savings while filing your ITR.
Important Rule:
You can only claim deductions for investments or expenses made in the same financial year. If you forget to claim a deduction for a particular year, you cannot claim it in another year.
1. Health Insurance Premiums (Section 80D)
If you are below 60 years:
Claim up to Rs 25,000 for health insurance premiums paid for yourself, your spouse, and dependent children.
For your parents:
Additional Rs 25,000 if they are below 60.
If parents are 60 or older, claim up to Rs 50,000.
Preventive health check-ups:
Up to Rs 5,000, but this is included in the above limits.
Medical expenses for senior citizen parents (if no insurance):
Claim up to Rs 50,000.
2. Employee Provident Fund (EPF) and Voluntary Provident Fund (VPF) (Section 80C)
You can claim a deduction for your own EPF contributions (not your employer’s).
The maximum limit under Section 80C (including all eligible investments) is Rs 1.5 lakh per year.
If your EPF+VPF contributions exceed Rs 2.5 lakh in a year, interest on the excess is taxable (since FY 2021-22).
If employer’s total contributions to EPF, NPS, and superannuation fund exceed Rs 7.5 lakh in a year, interest on the excess is also taxable.
3. Public Provident Fund (PPF) (Section 80C)
You can claim up to Rs 1.5 lakh for investing in PPF and other eligible schemes under Section 80C.
PPF is tax-free: no tax on interest or maturity amount.
Lock-in period is 15 years (can be extended).
4. ELSS Mutual Funds (Section 80C)
ELSS (Equity Linked Savings Schemes) are mutual funds with a 3-year lock-in.
You can claim up to Rs 1.5 lakh under Section 80C for ELSS and other eligible investments.
Claim deduction only in the year you invest. If you invest Rs 50,000 in one year but only claim Rs 20,000, you cannot claim the remaining Rs 30,000 in later years.
5.Interest on Savings Accounts (Section 80TTA & 80TTB)
If you are an individual below 60 years of age or a Hindu Undivided Family (HUF), you can claim a tax deduction of up to Rs 10,000 on the interest earned from your savings accounts in banks, co-operative banks, or post offices under Section 80TTA. This benefit is only for savings account interest and does not apply to interest from fixed deposits (FDs) or recurring deposits (RDs). For senior citizens (aged 60 years or above), a higher deduction of up to Rs 50,000 is available under Section 80TTB. This deduction covers interest earned from savings accounts, fixed deposits, and post office deposits. However, if a senior citizen claims the deduction under Section 80TTB, they cannot claim benefits under Section 80TTA for the same financial year. These deductions are only available to resident taxpayers, not to non-resident individuals (NRIs). It is important to note that any interest income above the respective limits—Rs 10,000 for Section 80TTA and Rs 50,000 for Section 80TTB—is fully taxable as per your income tax slab. While filing your income tax return, make sure to report your total interest income under the head “Income from Other Sources” and then claim the appropriate deduction in the Chapter VI-A deductions section of the ITR form. Always report your interest income accurately, even if it is not reflected in Form 16, Form 26AS, or the Annual Information Statement (AIS), to avoid any discrepancies or scrutiny from the tax department.
6. Home Loan Deductions
Interest paid: Up to Rs 2 lakh under Section 24(b).
Principal repayment: Up to Rs 1.5 lakh under Section 80C.
Both can be claimed only if you meet certain conditions (such as property ownership and loan usage).
7. Who Can Claim Deductions for Investments?
You can only claim deductions for investments or expenses paid from your own income.
You cannot claim deductions for investments made by your wife or children, even if they do not claim it themselves.
Exception: If you and your spouse have joint investments (like joint home loans or joint insurance policies), both can claim deductions for their share.
Only the parent who pays for a child’s education can claim the deduction under Section 80C.
8. Tips for Claiming Deductions
Keep all proofs/receipts handy, even if you don’t need to submit them when filing.
Make sure you enter correct details in the ITR form to avoid problems later.
If you miss claiming a deduction in the correct year, you lose the benefit.
9. Other Popular Deductions
National Pension Scheme (NPS): Additional Rs 50,000 under Section 80CCD(1B) over and above 80C.
Education Loan Interest: Deduction under Section 80E.
Medical treatment for specified diseases: Section 80DDB.
