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
- 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.
- 80DDB – Treatment of critical illness
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.
- 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
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.
- 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.
- 80TTA – Interest earned on Savings Account
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.
- 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.
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.