India Income Tax Department outlines 2025 Act deductions and filing deadlines

The Income Tax Department has detailed tax deduction provisions under the Income-tax Act, 2025, for life insurance premiums, health insurance, and medical expenses. These deductions, found in Sections 123 to 154, allow individuals and Hindu Undivided Families (HUFs) to reduce their Gross Total Income. For instance, Section 123 permits deductions for life insurance, Public Provident Fund (PPF) investments, and housing loan principal repayments, with an overall cap of Rs 1.5 lakh.

Separately, the deadline for non-audit business and professional taxpayers to file income tax returns (ITR-3 and ITR-4) for the 2026-27 assessment year is August 31, 2026. This deadline was extended from July 31 to provide more time for book completion. While the country transitions to the Income-tax Act, 2025, taxpayers filing for income earned during FY 2025-26 will continue to use the old ITR forms under the Income-tax Act, 1961.