Tax Rebates and Deductions You Can Claim Beyond Section 80C

Section 80C tends to dominate tax-saving conversations, largely because it's the first one most people learn about. But it's one of several deductions and rebates available, and several of the others go unused simply because nobody mentioned them. Note that most of what follows applies under the old tax regime; the new regime allows very few of these.

Deductions at a glance

Section 80D: health insurance premiums

Premiums paid for health insurance, for yourself, your family, and separately for parents, qualify for a deduction under 80D, with a higher limit if your parents are senior citizens. Combined, a taxpayer with senior citizen parents can claim up to ₹1,00,000 in total. This is worth claiming regardless of whether you're optimizing for tax, since the underlying insurance is something most households need anyway. Preventive health check-ups also count toward this limit, within a small ₹5,000 sub-cap, not over and above it.

Section 80TTA and 80TTB: savings account and senior citizen interest

Interest earned on a savings account is deductible up to ₹10,000 under 80TTA for individuals below 60. Senior citizens get a more generous version under 80TTB, ₹50,000, which also covers fixed deposit and recurring deposit interest, not just savings accounts. This is one of the more commonly missed deductions, since savings account interest is small enough per account that people don't think to claim it.

Home loan interest under Section 24

Interest paid on a home loan for a self-occupied property is deductible up to ₹2,00,000 a year under Section 24, separate from the principal repayment that falls under 80C. For a let-out property, there's no upper cap on the interest deduction, though set-off against other income is limited in a given year, with the remainder carried forward.

HRA: House Rent Allowance

If you're salaried, receive HRA as part of your compensation, and actually pay rent, a portion of that HRA is exempt from tax based on a formula involving your salary, the HRA received, and your city of residence. This is separate from any deduction; it's an exemption calculated before your taxable salary is even arrived at.

Section 80E: education loan interest

Interest paid on a loan taken for higher education, for yourself, your spouse, or your children, is fully deductible with no upper limit, for up to eight years from when repayment begins. Unlike most items on this list, there's no cap on the amount, only on the duration.

Section 87A: the rebate, not a deduction

87A works differently from everything above. It's a rebate applied after your tax is calculated, effectively reducing your tax liability to zero if your taxable income falls within its threshold, currently ₹12 lakh under the new regime for FY 2025-26, more generous than the old regime's rebate. It's automatic if you qualify, but understanding it matters because it changes whether a small additional deduction is even worth pursuing in a given year.

Putting it together

Deductions only help if you're on the regime that allows them, and if you actually have the documentation to back up the claim at filing time. Before assuming the new regime's lower rates are automatically better, add up what you'd actually claim under the old regime using the table above, and compare the two outcomes directly rather than guessing. See our complete guide to Section 80C for the investment-linked deductions this article deliberately leaves out.

This article is educational and not personalised financial advice. Deduction limits referenced here reflect the position as of FY 2025-26 per the Income Tax Department; always confirm current limits there before filing.