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Sections 80C and 80D are the most common sections under which people can save taxes*, but there are caps on deductions. So, there are other tax-saving options that people can utilise to maximise tax savings.
Tax* saving is an essential element of a financial plan. It helps you maximise your savings and utilise the money for other important financial goals in life. Under the Income Tax Act, Sections 80C and 80D are the most popular sections under which people avail tax deductions and tax savings. But, the amount that can be claimed under these sections is capped at a certain limit.
Under the provisions of the Income Tax Act, there are other sections and tax-saving methods that you can utilise to save on taxes. Section 80C investments that can help you get tax deductions include life insurance, ELSS, PPF, etc., but these are capped at ₹1.5 lakhs. 80D investment options include health insurance plans and that amount is also capped.
Read on to find out tax-saving options other than 80C and 80D in India.
Tax Saving Schemes Other Than 80C and 80D
There are many tax-saving investments other than 80C and 80D. Here is an exhaustive list that may help you save on taxes in India:
Section 80DD
This is another section under which tax deduction can be claimed by the family of a handicapped individual. The deduction applies to HUFs and individuals on the amount that has been spent to rehabilitate a handicapped person.
This deduction applies to:
Medical costs include nursing, rehabilitation, and training of a relative who is handicapped.
The amount that has been paid to a specified scheme for taking care of the handicapped individual.
The deductions that are applicable under this section are also capped up to a certain limit. These are:
In the case of 70% to 80% disability - ₹75,000
In the case of more than 80% disability - ₹1.25 lakhs
Furthermore, to claim this deduction you require a certificate of disability from the concerned medical authority.
Section 80DDB
Under this section, you can claim a deduction on medical expenditure on yourself or a dependent family member under certain conditions:
HUF or an individual can claim a deduction of up to ₹40,000 for the amount spent on the treatment of a certain medical condition.
There is a deduction limit of ₹1 lakh for expenses borne on the treatment of a senior citizen.
Medical costs claimed from an employer or an insurance policy are reduced prior to the application of these deductions.
To make a claim, you need a valid prescription from a medical practitioner.
Section 80TTA
One of the sections for tax deductions other than 80C is Section 80TTA. You can claim up to ₹10,000 as a deduction on the interest that you have earned by maintaining a savings account with a post office, cooperative, or bank.
Section 80GG
If there is no HRA (House Rent Allowance) provided by your employer, you can claim a deduction on the house rent under specific conditions.
The maximum tax deduction that you can claim has to be the lesser of:
₹5000 per month
10% of the adjusted GTA (Gross Total Income) subtracted from the rent
25% of your adjusted TI (Total Income)
Section 80E
You can also claim a tax deduction if you have availed of a study loan for yourself, your child, legal ward, or spouse. The deduction can be claimed till:
Either 8 years from the year in which the repayment of the loan began;
Or, until you have paid off the entire interest amount.
Section 80U
If you suffer from any physical disability, you can claim a deduction up to a maximum of ₹75,000 and if you suffer from severe physical disabilities, the amount that you can claim is up to ₹1.25 lakhs.
Note that Section 80U is different from Section 80DD as under Section 80U, a handicapped person can claim a tax deduction for themselves, while under Section 80DD, their family can avail of tax deductions.
Section 80G
Under Section 80G, you can claim deductions for donating money to social causes. The amount of deduction can range from 50% to 100%, depending on the institution where you have donated the money. This list includes charities like the National Children’s Fund, PM National Relief Fund, etc.
Section 80GGB
If any Indian company donates money to an electoral trust or a political party, the amount is eligible for a 100% deduction. But, to be eligible for this deduction, cash is not acceptable and some other mode of payment has to be chosen.
Section 80GGC
If any individual donates money to an electoral trust or a political party, the amount is eligible for a 100% deduction. But, to be eligible for this deduction cash is not acceptable and some other mode of payment has to be chosen.
Section 80TTB
If you are a senior citizen, you can claim up to ₹40,000 as a deduction on the interest that you have earned by maintaining a savings account with a post office, cooperative, or bank.
Section 80RRB
If you are a patentee, you can claim a deduction up to a maximum of ₹3 lakhs on the income that you earn on any patent that you have registered under the Indian Patents Act 1907, on or after 1st April 2003.
Conclusion
These are some of the tax-saving methods that you can use. You can also get tax deductions on tax-saving investments other than 80C. It is always advisable that you read all the sections carefully so that you understand whether you are eligible for tax benefits other than 80C.
Apart from the sections mentioned above, there might be other sections other than section 80C and section 80D under which you can save your taxes and utilise your hard-earned money in other ways. It is advisable to consult a tax expert to fully understand the latest tax saving options available to you.
