7 Best Income Tax Saving Options for 2015-16 Other Than 80C

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7 income tax saving options other than 80cDid you check these best income tax saving options other than 80C section? Have you exhausted your 100% income tax limit and looking for how to save more tax beyond section 80C?

We all know that section 80C is the most popular section to get income tax benefit. In fact people mostly depend target savings or investment options related to section 80C only. But besides section 80C there are few more sections under which one can save more income tax. In this article we will discuss about such 7 income tax saving options that one can consider other than section 80C.

Popular Income tax saving options other than 80c

  1. 80D-Health Insurance Premium Paid

Under section 80D one can claim health insurance or mediclaim policy premium paid for his direct family and parents as well. One can claim maximum 15,000 yearly for direct family and 15,000 more for parents. In case parents are above 60 years age, then he/she can go further upto 20,000. So, in total 35,000 can be claimed under section 80D. This is one of the most popular income tax saving options other than 80c. But in-laws will not be covered under this section.

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  1. 80DDB – Treatment of critical illness
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This may not be a regular income tax saving option as one can only avail this facility under certain conditions. In case any of your dependent is suffering from any of the diseases like Neurological, Parkinson, Malignant Cancers, AODS, Chronic Renal Failure, Hemophia, Thalassemia, you can claim the treatment amount under section 80DDB. The maximum allowable limit is 40,000 in general case and maximum 60,000 for senior citizens. But remember if you use your health insurance policy to pay hospitalization expenses then you can’t use this income tax saving option.

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  1. 80E – Interest of Education Loan

Now this is a very good and useful income tax saving option other than 80C section. Education loan has become very popular these days as higher studies in abroad or in India is costing very high. One can take education loan for himself or herself, spouse and kids also. And at the same time get income tax exemption for the interest paying. Here principle amount repaid can’t be claimed for income tax benefit. The entire interest amount can be exempted and maximum 8 years is allowed. But remember you have to go for a full-time course only to enjoy this income tax saving option.

4. 80GG – Don’t get HRA, then claim your house rent

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This situation can be applied in 2 scenarios. First case is, if your company is not paying HRA (House Rent Allowance) as part of your salary. And the 2nd case is if you are staying at your own home and you have a 2nd house or flat also. And you have rented your 2nd house and earning monthly rent. In such a scenario one can use section 80GG to get income tax benefit. One can claim tax deduction of Rs 2000 or 25% of annual income or rent paid 10% of annual income whichever is less.

  1. 80CCG – Rajiv Gandhi Equity Savings Scheme

RGESS is launched few years back in Budget 2012. Under this investment scheme one can get 50% invested amount as income tax exempted. The maximum investment limit is 50,000. That means one can get max 25,000 income tax saving option under section 80CCG. The amount invested under this scheme is invested in stock market. The maturity value and interest earned on this scheme is tax free. The lock-in period is also very less, 3 years. One can get income tax benefit under this section 80CCG for 3 years only and also your annual income should not exceed 10 lakh. I will talk about RGESS in more detail in a separate article.

  1. 80TTA – Interest earned on Savings Account
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Do you know that the interest amount earned in your bank savings account deposit can also be income tax exempted? Yes, under section 80TTA one can claim that money. Although this is useful income tax saving option but the limit is very less. Only up to 10,000 one can get tax exemption. This is recently declared during budget 2012.

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  1. 80EE – Home loan interest Additional Deduction

In budget 2013 one more section has introduced, section 80EE. Under this one can get extra 1 lakh benefit for the home loan interest paid. But this section is only for new home buyers. People who took home loan from 2012-13 financial years can utilize this exemption. In case you are not able to exhaust the limit then it can be carry forwarded to next financial year.

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Have you tried any of these income tax saving options? Did you find any problem while claiming for tax exemption other than section 80c? Section 80C is so popular that people often forget to consider these situations. Share your feedback about this article and also let me know if you have any question regarding any of these sections.

24 COMMENTS

  1. Hi,
    Can you please suggest me some tax saving plan. I am coming under 30% tax bracket. Currently I am investing 1.5 lacs in 80C and 50000 in NPS.

    Is there any other things, I need to do to save more tax. Please suggest.

  2. Dear Santanu,

    Could you please let me know the best option in tax savings investment other than 80C. I need to invest 35000-40000 for this year.

  3. Hi,

    santanu its really nice blog..i got a lot of info.i want to invest 5k per month as.which will b best investment plan in market and get goood returns without any risk.please help me on this.

    Thanjs
    Jeeta

  4. Hi Santanu,

    My Grandmother is paralyzed (Bed ridden) and completely dependent on me. I am sending her 5000 every month and some extra money as and when required.
    Can I get some Tax Exemption on this amount.

    Thanks,
    BK

  5. Can i claim ’80EE – Home loan interest Additional Deduction’ if i purchased new home on MAR-13 and just claiming 200000 only under ‘Interest on Hsg Ln Loan Taken After 31/3/1999’

  6. Hello Sir,
    what are the tax rebate if investment plan beyond 1.5 lakh limit,
    also what is the int. rate provided in REGSS and is it inclusive in the investment plan of limit ( of 1.5 lakh)
    what are the other reliable investment plan of life insurance coverage other than LIC.

    Thanks

  7. Sir, I am paying premium of nearly 35000 INR per year for LIC policies. What is the category under which i can claim tax exemption? Thanks

  8. Thank you so much Sir, I was searching for some other investment ways to save some amount of tax from my income. And found your blog and just a amazing experience. The perfect place for my all the doubts. Thank you so much again for sharing with us.

  9. Great work Santanu !!! I’m totally unaware of all this investment plans, even my friend’s don’t know about anything. We knows only about 80C investment plans. Thank you so much for creating awareness in peoples like me.

    • Hi Sameer,

      It is really nice to read such comments from readers like you. As at the end I feel my hard work is helping others to gain knowledge.

      Thanks for the appreciation. Keep visiting for more such content by subscribing to my blog. 🙂

    • Thanks Dhaval for liking my efforts. I am trying to share whatever I learn every day. And it is really a great feeling when it is actually useful for others. I hope you will share about this with your friends as well 🙂

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