Deductions for Salaried Employees for ITR Filing AY 24-25

Deductions for Salaried Employees for ITR Filing AY 24-25


Deductions for Salaried Employees for ITR Filing AY 24-25 As the assessment year 2024-25 approaches, salaried employees need to be aware of various tax deductions available to reduce their tax liability. Understanding these deductions can help maximise savings and ensure compliance with the tax laws. Here, we provide a detailed guide on the key deductions that salaried employees can claim while filing their Income Tax Return (ITR).

  1. Section 80C: Investments and Expenses

Deductions for Salaried Employees for ITR Filing AY 24-25 Section 80C is one of the most popular and widely used sections for tax-saving purposes. It allows a maximum deduction of ₹1.5 lakh from gross total income. Here are some eligible investments and expenses under this section:

Life Insurance Premiums: Premiums paid for life insurance policies for self, spouse, and children

Employee Provident Fund (EPF): Contributions to the EPF.

Public Provident Fund (PPF): Deposits made in the PPF account.

National Savings Certificate (NSC): Investments in NSC.

Tax-saving Fixed Deposits: Fixed deposits with a tenure of 5 years or more.

Equity Linked Savings Scheme (ELSS): Investments in ELSS funds.

Principal Repayment on Home Loan: Principal repayment of a home loan.

Tuition Fees: Tuition fees paid for up to 2 children.

  1. Section 80D: Health Insurance Premiums

This section allows deductions for premiums paid for health insurance policies and preventive health check-ups.

Self, Spouse, and Children: Maximum deduction of ₹25,000.

Senior Citizens: An additional deduction of ₹50,000 if the insured is a senior citizen.

Preventive Health Check-up: Up to ₹5,000 within the overall limit.

  1. Section 80DD: Disabled Dependent

Provides a deduction for expenses incurred on medical treatment, training, and rehabilitation of a dependent with a disability. Deductions for Salaried Employees for ITR Filing AY 24-25

Fixed Deduction Amounts: ₹75,000 for disability (40% or more but less than 80%) and ₹1.25 lakh for severe disability (80% or more).

  1. Section 80DDB: Medical Expenses for Specified Diseases

Allows deductions for medical expenses incurred for treating specified diseases.

For Individuals Below 60: Up to ₹40,000.

For Senior Citizens: Up to ₹1 lakh.

  1. Section 80E: Education Loan Interest

This section provides deductions for interest paid on education loans for higher studies for self, spouse, children, or a student for whom the individual is a legal guardian. Deductions for Salaried Employees for ITR Filing AY 24-25 The deduction is available for up to 8 years or until the interest is fully paid, whichever is earlier.

  1. Section 80CCD: National Pension System (NPS)

This section offers deductions for contributions made to the National Pension System.

Employee’s Contribution: Maximum deduction of ₹1.5 lakh combined with Section 80C.

Employer’s Contribution (Section 80CCD(2)): Additional deduction up to 10% of salary (Basic + DA) for salaried individuals and 20% of gross income for self-employed individuals.

  1. Section 80TTA: Savings Account Interest

Allows a deduction of up to ₹10,000 on interest earned from savings accounts with banks, post offices, or co-operative societies.

  1. Section 24: Interest on Home Loan

Deduction for interest paid on home loans for the purchase, construction, repair, renewal, or reconstruction of a residential property.

Self-occupied Property: Up to ₹2 lakh per year.

Let-out Property: No upper limit.

Pre-construction Interest: Deductions for Salaried Employees for ITR Filing AY 24-25 Deduction allowed for pre-construction interest in five equal instalments starting from the year the construction is completed.

  1. House Rent Allowance (HRA)

Deduction for rent paid by salaried individuals who receive HRA from their employer.

Calculation Basis: Least of the following is deductible

  Actual HRA received.

50% of salary (Basic + DA) if living in a metro city; 40% if living in a non-metro city.

  Rent paid minus 10% of salary (Basic + DA).

No HRA Component: Individuals who do not receive HRA but still pay rent can claim deduction under Section 80GG, subject to certain conditions.


Deductions for Salaried Employees for ITR Filing AY 24-25 These deductions can significantly reduce your taxable income, thereby lowering your tax liability. It’s crucial to maintain proper documentation and proofs for all the deductions claimed to ensure a smooth and hassle-free ITR filing process. Utilise these deductions effectively to maximise your tax savings for the assessment year 2024-25.


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