🗓️Last Updated: June 2026

Income Tax Deductions 2026: 80C, 80D, HRA, LTA — Complete List

Maximise your tax savings in 2026 with this complete guide to income tax deductions in India. Covers Section 80C (₹1.5 lakh via PPF, ELSS, LIC), 80D (health insurance), HRA, standard deduction of ₹50,000 and a detailed comparison of old vs new tax regime.

🔗Income Tax e-Filing Portal — Official Portal →

📋 Overview

Income tax deductions reduce your taxable income, lowering the total tax you owe. Under the Old Tax Regime, individuals can claim a wide range of deductions under Chapter VI-A of the Income Tax Act — most importantly Section 80C (up to ₹1.5 lakh), 80D (health insurance), HRA (House Rent Allowance), and LTA (Leave Travel Allowance). The standard deduction of ₹50,000 is available to all salaried employees and pensioners under both regimes. Important: From FY 2023-24, the New Tax Regime is the default. If you want to claim 80C, 80D, HRA or LTA deductions, you must explicitly opt for the Old Tax Regime when filing your ITR or through your employer at the start of the financial year.

✅ Eligibility

  • ✓All resident individuals filing under the Old Tax Regime can claim 80C, 80D, HRA and other deductions
  • ✓Standard deduction of ₹50,000 is available to salaried employees and pensioners under both regimes
  • ✓HRA deduction is available only to salaried employees who live in rented accommodation and receive HRA as part of salary
  • ✓80D deduction is available to any individual or HUF paying health insurance premiums for self, spouse, children or parents
  • ✓80C investments must be made during the relevant financial year (April 1, 2025 to March 31, 2026 for FY 2025-26)
  • ✓NRI individuals can claim 80C (LIC, ELSS, home loan principal) and 80D but not all 80C instruments are available to them

📁 Documents Required

▸Investment proofs for 80C: PPF passbook, ELSS/mutual fund statement, LIC premium receipts, NSC certificates, 5-year FD certificate, ULIP premium receipt
▸Home loan statement from bank showing principal and interest components separately (for 80C and Section 24)
▸Children's school/tuition fee receipts (for 80C — up to 2 children)
▸Health insurance premium receipt showing insured persons and premium amount (for 80D)
▸Preventive health check-up receipts (up to ₹5,000 within 80D limit)
▸HRA: Rent receipts (monthly) and landlord PAN if annual rent exceeds ₹1 lakh
▸LTA: Travel tickets, boarding passes and bills (for Leave Travel Allowance claim)
▸Donation receipts with 80G certificate from the charitable organisation

💰Fees & Processing Time

Fee
No fee to claim deductions — provide proofs to your employer for TDS adjustment, or enter details directly in your ITR.
Processing Time
Deductions declared to your employer are reflected in monthly TDS within 1–2 payroll cycles. Deductions claimed in ITR are processed by CPC within 15–45 days of filing.

🖥️ How to Apply Online

  1. 1Section 80C — Invest up to ₹1,50,000 in eligible instruments: PPF (Public Provident Fund), ELSS (Equity Linked Savings Scheme), LIC/ULIP premiums, NSC (National Savings Certificates), Sukanya Samriddhi Yojana, 5-year tax-saving FD, home loan principal repayment, or children's tuition fees.
  2. 2Section 80D — Pay health insurance premiums: ₹25,000 for self/spouse/children; ₹25,000 additional for parents (₹50,000 if parents are senior citizens). Total maximum: ₹1,00,000. Also includes ₹5,000 for preventive health check-up within this limit.
  3. 3HRA (House Rent Allowance) — The exemption is the minimum of: (a) actual HRA received, (b) actual rent paid minus 10% of basic salary, or (c) 50% of basic salary (metro cities) / 40% (non-metro). Collect rent receipts and, if annual rent exceeds ₹1 lakh, landlord's PAN.
  4. 4Standard Deduction — ₹50,000 flat deduction for all salaried employees and pensioners. No documentation required — automatically applied.
  5. 5Section 24(b) — Home loan interest deduction up to ₹2,00,000 per year for a self-occupied property. Obtain the interest certificate from your bank.
  6. 6Section 80TTA / 80TTB — ₹10,000 deduction on savings account interest (80TTA for individuals below 60); ₹50,000 deduction on all interest income for senior citizens (80TTB).
  7. 7Submit investment declarations to your employer before the deadline (usually January–February) for TDS adjustment. Upload proofs when requested by HR.
  8. 8Enter all deduction details in the relevant schedule of your ITR form when filing online at incometax.gov.in.

🏢 How to Apply Offline

  1. 1Collect all physical investment proofs: LIC policy receipts, PPF passbook, NSC certificates, children's school fee receipts.
  2. 2Submit physical copies of proofs to your employer's HR or accounts department within the deadline communicated by your company (typically January–March).
  3. 3For home loan interest, obtain a physical or digital interest certificate from your bank and submit it to HR.
  4. 4For HRA, collect signed rent receipts from your landlord on stamp paper or plain paper. Include landlord name, address, amount, period, and signature.
  5. 5If deductions were not fully adjusted by employer, claim them in ITR — enter details in Schedule VI-A (Deductions under Chapter VI-A).

⚠️Common Problems & Solutions

✗Employer did not apply 80C deductions — excess TDS was deducted
→You can still claim all deductions in your ITR. CPC will compute tax correctly and issue a refund for the excess TDS. Make sure to enter all investments under Schedule VI-A in your ITR form.
✗HRA claim rejected — landlord PAN not submitted
→If annual rent exceeds ₹1 lakh (₹8,333/month), landlord PAN is mandatory. If landlord refuses to provide PAN, you can still claim deduction in ITR and declare that PAN was unavailable — but be prepared to substantiate with rent receipts and bank transfer proof if selected for scrutiny.
✗80C investment proof not accepted by employer — deadline missed
→If the employer's deadline is missed, you cannot adjust through payroll TDS. However, you can claim all valid 80C deductions in your ITR. The investments must have been made during FY 2025-26 (before March 31, 2026). Refund for excess TDS will be issued by CPC.
✗Chose New Regime with employer but want to switch to Old Regime for deductions
→Salaried employees can switch regime at the time of filing ITR — independently of the declaration given to the employer for TDS purposes. If switching to Old Regime in ITR, you can claim all 80C, 80D, HRA deductions. Any excess TDS deducted will be refunded.
✗Home loan principal and interest deduction both being claimed — confusion
→Principal repayment is claimed under Section 80C (within ₹1.5L limit). Home loan interest is separately claimed under Section 24(b) (up to ₹2L for self-occupied). These are distinct deductions. Both are available under the Old Regime; neither is available under the New Regime (except home loan interest for let-out property).

❓ Frequently Asked Questions

Q.What is the maximum deduction under Section 80C in 2026?

The maximum deduction under Section 80C is ₹1,50,000 per financial year. This limit is combined across all eligible instruments: PPF, ELSS, LIC premium, NSC, 5-year tax-saving FD, Sukanya Samriddhi, ULIP, home loan principal, and children's tuition fees (up to 2 children).

Q.Can I claim both 80C and 80D deductions in the same year?

Yes. Section 80C (up to ₹1.5L) and Section 80D (up to ₹25,000 for self/family + ₹25,000 to ₹50,000 for parents) are separate deductions with separate limits. You can claim both simultaneously under the Old Tax Regime, potentially reducing taxable income by up to ₹3 lakh or more.

Q.How is HRA exemption calculated?

The HRA exemption is the minimum of three values: (1) Actual HRA received from employer, (2) Actual rent paid minus 10% of basic salary, (3) 50% of basic salary if living in a metro city (Mumbai, Delhi, Kolkata, Chennai) or 40% for non-metro cities. Example: Basic ₹50,000/month, HRA received ₹20,000, rent paid ₹18,000 — the exemption would be min(₹20,000, ₹13,000, ₹25,000) = ₹13,000/month.

Q.Which is better — Old Tax Regime or New Tax Regime in 2026?

It depends on your deductions. The New Regime offers lower tax slabs (5% for ₹3–7L, 10% for ₹7–10L, 15% for ₹10–12L, 20% for ₹12–15L, 30% above ₹15L) but no 80C/80D/HRA deductions. The Old Regime is beneficial if your total deductions exceed approximately ₹3–3.5 lakh. Use the official Tax Calculator on incometax.gov.in to compare for your specific income and investments.

Q.Can I claim deductions if I miss the deadline to submit proofs to my employer?

Yes. If your employer missed applying your deductions for TDS, you can claim all valid deductions in your ITR. The excess TDS deducted will be refunded by the Income Tax Department after ITR processing. Ensure you have all supporting documents as they may be required if your return is selected for verification.

Q.What is the standard deduction for salaried employees in 2026?

The standard deduction for salaried employees and pensioners is ₹50,000 per year. It is available under both the Old and New Tax Regimes. No documentation is required — it is automatically deducted from gross salary. In the New Regime, it was introduced from FY 2023-24.

Q.Is PPF eligible for 80C deduction every year?

Yes. The amount deposited in a PPF account during the financial year is eligible for deduction under Section 80C, subject to the overall ₹1.5 lakh limit. The minimum deposit per year is ₹500 and the maximum is ₹1.5 lakh. PPF interest and maturity proceeds are also fully tax-exempt.

Q.Can I claim 80D deduction for parents' health insurance if they are senior citizens?

Yes. You can claim up to ₹50,000 additional deduction for health insurance premiums paid for parents aged 60 or above (senior citizens). Combined with ₹25,000 for your own family, the total 80D deduction can be up to ₹75,000. If you are also a senior citizen, the combined limit can be up to ₹1,00,000.

📞Helpline & Support

  • ▸Income Tax Helpline: 1800-103-0025 (Toll-Free) — Mon–Sat, 8 AM to 8 PM
  • ▸Email: ask@incometax.gov.in — for queries on deductions and ITR filing
  • ▸Tax Calculator (Old vs New Regime): Available at incometax.gov.in → Tax Calculator
  • ▸For investment-related queries (PPF, NSC): Nearest post office or authorised bank branch
  • ▸For ELSS/mutual fund queries: Your AMC's customer care or SEBI SCORES portal
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Disclaimer: NagrikIQ is an informational platform and is not affiliated with any government department. Information provided is for guidance only. Always verify details on the official government portal before taking action.