Section 345 - Deductions in respect of certain payments / income - Section 345

Deductions in respect of certain payments / income - Section 345. Section 345 of the Income Tax Act 2025 sits in Chapter XVII (Deductions in respect of certain payments / income). In force from 1 April 2026.

Key provisions

• *Resident individuals and Hindu Undivided Families (HUFs)** who have opted out of the new tax regime under Section 202. NRIs and foreign companies are generally not entitled to Chapter XVII deductions.
• A client opts into the **old tax regime** under Section 202(2), which is now an opt-in (not the default).
• Evidence of qualifying investment or payment is on file and dated within the tax year.
• The combined cap across Sections 321-323 (₹1,50,000) is not exceeded.
• The taxpayer's marginal rate makes the deduction worth more than the new regime's lower slab rate. ThynkTax's regime-comparison calculator runs this automatically - most salaried taxpayers earning above ₹12 lakh with rent, home loan interest, and ₹1.5 lakh of 80C-eligible investments find the old regime more favourable.
• **Section 344** - immediately preceding provision in the same chapter.
• **Section 346** - immediately following provision in the same chapter.
• The full chapter spans Sections 321 to 350.

Use via API

curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/345

{
  "act_2025_ref": "345",
  "old_reference": "Section 345, Income Tax Act 1961",
  "title": "Section 345 - Deductions in respect of certain payments / income - Section 345",
  "category": "Section",
  "limit_or_rate": "-",
  "applicable_to": "-",
  "effective_from": "2026-04-01"
}