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Tuesday, September 24, 2013

10 tax saving options other than Section 80C

Most of the taxpayers know only about the type of deductions and the limit of deduction under Section 80Cbut there are few more deductions which taxpayer can claim to lower the amount of tax payable. Listed below is a comprehensive picture of tax deductions and exemptions that you are entitled to in various financial products.
SectionEligible assesseeConditionsDeduction
80CCGResident individual (Not for NRI)New investors who invests under equity scheme if gross total income does not exceed Rs. 10 lakh50% of amount invested in equity shares, restricted to Rs. 25,000
80DIndividual /HUFMedical insurance premium paid for self, spouse or dependent childrenMaximum Rs.15,000 and Rs.20,000 in case of senior citizen
80DDResident individual / resident HUFFor maintenance including treatment or insurance the lives of physical disable dependent relativesRs 50,000 flat andRs. 1 lakh in case of severe disability
80DDBResident individual / resident HUFMedical treatment expenses for himself or dependent or a member of HUF (in case of HUF assessee)Actual expense orRs. 40,000 (Rs. 60,000 in case of senior citizen)
80EIndividualFor interest payment on loan taken for Higher studies for self or education of spouse or childrenEntire amount of interest (not principal) is deductible for maximum of 8 years
80GAll assesseesDonations to charitable institution100% or 50% of amount of donation made. (ReferIncome Tax Site for Detailed Info)
80GGIndividual (who does not get HRA)For rent paidLeast of the following:
1). Rs. 2000 per month
2). 25% of total income
3). Rent paid less 10% of total income
80GGCAll assessee other than Indian companiesContribution give to political partiesSum contributed to political parties
80TTA Individual/HUFInterest in savings account (Not time deposits or fixed deposits)Maximum is Rs.10,000
80UIndividual/HUFOnly for taxpayer and not for any other i.e. spouse, children etc Rs. 50,000 which goes to Rs. 1 lakh in case taxpayer is suffering from severe disability

Hence, there are several sections apart from 80C that can help an individual benefit from tax exemptions. It is time to start looking beyond 80C for tax savings.

The writer is the CEO of