Particularly if you are trying to lower your tax load, tax season can seem taxing. Fortunately, the Income Tax Act provides a number of deductions you could be entitled to reduce your taxable income. If you know how to use them, these—often known as itemized deductions 2025—can help you save a good sum of money.
Describes itemized deductions here:
Said another way, itemized deductions are particular kinds of expenses the government lets you deduct from your overall income. Claiming them reduces your taxable income, so lowering your tax payable amount.
These differ from typical deductions. You assert actual amounts you spent in specific areas rather than a set amount.
Important Itemized Deductions 2025 for Indian Taxpayers
Under the previous tax system, here are the main itemized deductions 2025 you should be looking forward to:
- Section 80C – Up to ₹1.5 lakh
- Premium for Life Insurance
- Public Provident Fund (PPF)
- Equity Linked Saving Systems (ELSS)
- Employment Provident Fund (EPF)
- Children’s tuition costs at their schools
- Home loan principal payback
- Premium for Life Insurance
- Section 80D: Self and family health insurance premiums, up to ₹25,000
- Parents of seniors: extra ₹50,000
- Parents of seniors: extra ₹50,000
- Section 24(b) – Interest on Home Loans
- Up to ₹2 lakh deduction for house owned by oneself on interest paid.
- There is no limit on rented property; only a maximum ₹2 lakh set-off permitted.
- Up to ₹2 lakh deduction for house owned by oneself on interest paid.
- Section 80E – Interest on Education Loans
- No limit on interest deduction
- Available eight years from the year you begin paying back debt.
- No limit on interest deduction
- Section 80G: Donations
- 50% or 100% deduction for gifts to approved charities
- Save donation evidence and receipts.
- 50% or 100% deduction for gifts to approved charities
- Section 80TTA/80TTB – Interest on Savings
- ₹10,000 for regular taxpayers
- Section 80TTB specifies ₹50,000 for senior citizens.
- ₹10,000 for regular taxpayers
Should You Use the Old Regime for Itemized Deductions?
In 2025, Indian taxpayers will have options between:
- New tax structure: low rates without deductions
- Old tax rules: higher rates but permits itemized deductions 2025
If you pay insurance premiums, have a house loan, invest, or help parents, the old regime with itemized deductions 2025 could offer better savings.
Advice on Making Claims for Itemized Deductions
- Save all payment records and receipts.
- Plan investments early; don’t wait until March.
- Based on your income, pick the right ITR form.
- Examine both tax systems before filing.
Final Notes
Smart use of itemized deductions 2025 will enable you to save a sizable tax load. These deductions honor intended spending whether they come from investments, home loans, or health insurance. Spend some time determining what you qualify for, correctly filing your return, and maximizing each deduction allowed.
