Question 1

What investments qualify for Section 80C deduction and what is the limit?

Accepted Answer

Section 80C of the Income Tax Act allows individuals and HUFs to claim a deduction of up to ₹1,50,000 per financial year on specified investments and expenses. This is one of the most popular taxsaving sections in India.

Note: Section 80C deductions are only available under the old tax regime. If you opt for the new regime, you cannot claim 80C.

Eligible investments and expenses:

Investment  Lockin Period  Returns (approximate)

PPF (Public Provident Fund)  15 years  7.1% (taxfree) 
 ELSS

Question 2

How is HRA exemption calculated under Section 10(13A) in India?

Accepted Answer

House Rent Allowance (HRA) is a component of your salary that can be partially or fully exempt from tax under Section 10(13A) of the Income Tax Act. This exemption is only available under the old tax regime.

HRA exemption is the LOWEST of these three amounts:

1. Actual HRA received from your employer
2. 50% of basic salary (for metro cities: Delhi, Mumbai, Kolkata, Chennai) or 40% of basic salary (for nonmetro cities)
3. Rent paid minus 10% of basic salary

Example calculation:

Say your month

Question 3

What deduction can I claim under Section 80D for health insurance premiums?

Accepted Answer

Section 80D allows deductions for health insurance premiums paid for yourself, your family, and your parents. This deduction is available only under the old tax regime.

Deduction limits under Section 80D:

Who is covered  Age of insured  Deduction limit

Self, spouse, children  Below 60  ₹25,000 
 Self, spouse, children  60 or above (senior citizen)  ₹50,000 
 Parents  Below 60  ₹25,000 
 Parents  60 or above  ₹50,000

Maximum combined deduction scenarios:
 Self (below 60) + Parents (below

Question 4

What is the standard deduction for salaried employees in India?

Accepted Answer

The standard deduction is a flat deduction from your salary or pension income. No proof of expenses is needed.

Standard deduction amounts:

Tax Regime  Standard Deduction

New tax regime (FY 202526)  ₹75,000 
 Old tax regime  ₹50,000

Who can claim it:
 Salaried employees (receiving salary under Section 15)
 Pensioners (receiving pension under Section 17)
 Family pension recipients (₹15,000 or 1/3 of pension, whichever is lower, under Section 57)

How it works in the new regime:

Under the

Categories

Deductions & Exemptions

What investments qualify for Section 80C deduction and what is the limit?

How is HRA exemption calculated under Section 10(13A) in India?

What deduction can I claim under Section 80D for health insurance premiums?

What is the standard deduction for salaried employees in India?