ITR Filing 2025: What 80C, 80D, and 24B Mean for Your ITR

As the time to file Income Tax Returns (ITR) for Financial Year 2024-25 begins, it’s important for taxpayers to understand certain key sections of the Income Tax Act, 1961. These sections help individuals calculate their taxes correctly, make use of deductions, and select the right tax regime. The Income Tax Department has already released the ITR-1 and ITR-4 forms for Assessment Year 2025-26. These forms are meant for individuals and businesses earning up to ₹50 lakh annually, marking the start of the ITR filing process.

Compulsory Filing Under Section 139(1)

Section 139(1) of the Income Tax Act says that if a person’s income is more than the exemption limit, they must file their ITR within the given deadline. This section covers the rules for both mandatory and voluntary filing of income tax returns. Even if someone doesn’t meet the income threshold, they can still file voluntarily for record-keeping or refund purposes.

Read More, ITR Filing Schedule for FY 2024–25: Key Deadlines to Know. 

Tax-Saving Investments – Section 80C

Section 80C allows deductions on certain investments and expenses but only under the old tax regime. This section is one of the most commonly used for tax saving. You can get a deduction of upto ₹1.5 lakh for investments and expenses such as:

• Public Provident Fund (PPF) 
• Employees’ Provident Fund (EPF) 
• Equity Linked Savings Schemes (ELSS) 
• Tax-saving fixed deposits (FDs) 
• Life insurance premiums 

However, if you choose the new tax regime, Section 80C deductions are not available. Instead, the new regime allows a few specific deductions such as:

• Section 80CCD(2): Deduction of up to 10% of the employer’s contribution to the National Pension Scheme (NPS) 
• Section 80JJAA: For businesses, deductions on additional employee costs 
• Section 80CCH: For contributions made to the Agniveer Corpus Fund 

Home Loan Interest Payment – Section 24B

If you’re paying interest on a home loan or even a loan taken for home improvement, you can claim a deduction U/S 24B. It allows you to minimise your taxable income by up to ₹2 lakh per year. The best part is that this deduction is available under both the old and new tax regimes. It’s especially useful for salaried and self-employed individuals who have taken housing loans.

House Rent Allowance (HRA) – Section 10(13A)

If you live in a rented house and receive House Rent Allowance (HRA) from your employer, you can get an exemption U/S 10(13A). However, this benefit is only available in the old tax regime. To be eligible for this exemption, your rent should be more than ₹1 lakh per year. You’ll also need to provide the landlord’s PAN number to claim the benefit.

Health Insurance Premiums – Section 80D

Section 80D allows you to get deductions for premiums paid on health insurance. These can include policies covering:

• Self 
• Spouse 
• Dependent children 
• Parents 

The limits under Section 80D are as follows:

• ₹25,000 for individuals below the age of 60 
• ₹50,000 for senior citizens (aged 60 years or above) 
• If both the taxpayer and parents are senior citizens, the combined deduction can go up to ₹1 lakh per year 

This section also covers preventive health check-ups within the overall limit.

Penalty for Late ITR Filing – Section 234F

If you do not file your ITR by the due date, you could be penalised under Section 234F. The penalties are as follows:

• If your total income is below ₹5 lakh, the penalty is ₹1,000 
• If your income is above ₹5 lakh, the penalty increases to ₹5,000 

Apart from this penalty, if you delay filing your return, you may also have to pay interest under Section 234A and Section 234B. These additional charges can increase your overall tax liability, so it is always better to file on time.

Conclusion

Filing your ITR accurately and on time is essential to avoid penalties and reduce tax liability. Understanding sections like 80C, 80D, 24B, and 10(13A) helps in claiming the right deductions and choosing between the old and new tax regimes effectively. Taxpayers should assess their financial situation and select the regime that offers the maximum benefit. With the ITR forms for AY 2025–26 now available, it’s time to start collecting documents and plan your filing early.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.                              

Investments in securities market are subject to market risks, read all the related documents carefully before investing.