Exhausted Your Section 80C Limit? Check These 10 Tax-Saving Investment Options

As the current fiscal year is coming to an end, taxpayers are searching for different methods to reduce their taxes.

The income tax laws in India provide several ways to lower your taxable income. Nonetheless, the majority of taxpayers are aware of and utilise the Rs 1.5 lakh deduction provided by Section 80C for investments made in national pension plans, life insurance, fixed deposits, public provident funds, and more.

However, majority of us neglect to utilise all of the tax-saving opportunities at our disposal.

Most of the time, we stopped after claiming the Section 80C deduction since we were unaware of additional alternatives.

These are other tax-saving measures other than Section 80C:

Section 80CCD

Contributions to National Pension Schemes (NPS) are eligible for tax deduction. The deduction limit under this section is Rs 50,000. This exceeds the total deduction cap of Rs 1,50,000 permitted under Section 80C.

Section 80D

Health insurance premiums and medical expenditures can be claimed as tax deductions. The deduction limitations might be Rs 25,000, Rs 50,000, Rs 75,000, or Rs 1 lakh, depending on the age and type of taxpayer.

Section 80DD

For costs paid on the care and recovery of your dependents with disabilities, you may be eligible for tax deductions. For those with 40% to 80% disability, the deduction limit is Rs 75,000; for those with more than 80% impairment, it is Rs 1,25,000. These amounts are determined by the degree of the disability.

Section 80DDB

Taxpayers who incur medical expenditures for themselves or their families due to specific diseases are eligible to claim tax deductions. The deduction limit is Rs 40,000 and it may exceed Rs 10,00,000 in the case of elderly individuals.

Section 80E

The interest paid on educational loans is deductible from taxes. Loans taken out for higher education by the taxpayer, their spouse, their children, or a student for whom the payee is a legal guardian are eligible for the deduction. This has no upper limit on deductions, however some requirements must be fulfilled.

Section 80EE

This provision provides exemptions from taxes to first-time homebuyers. This amount is beyond the Rs 2 lakh maximum allowed for house loan interest repayment under Section 24 of the Income Tax Act. The deduction cap is Rs 50,000.

Section 80G

Taxpayers can deduct contributions given to recognised charity organisations. This clause covers individuals as well as companies. The amount of donations deducted for digital modalities, including bank transfers, has no upper limit. Nonetheless, there is an annual cap of Rs 2000 on cash contributions.

Section 80GG

Individuals are entitled to a deduction for the rent they pay towards their housing. This deduction is available if the worker doesn’t own a place of residence in the area where they live or work and does not get HRA from their employer. The deduction limit is subject to certain requirements.

Section 80GGA

Individuals and corporations can deduct donations made to organisations involved in scientific studies or rural development. The donation needs to be given to a recognised institution or group. The deduction limit is the whole amount contributed, or Rs 10,000, whatever is less.

Section 80GGB

Donations to political parties or electoral trusts in India are tax deductible. This has no upper limit on deductions.

Date: 20/03/2024/ Source: News18 Business