Section 80C is the most popular tax saving section where one can save taxes on investment up to Rs. 1.5 lakhs per year. And an additional Rs. 50000 can be claimed under section 80 CCD on investment in NPS, which makes it 2 lakhs per year.
Most of the tax-saving options are available under section 80, but there are other sections that can help in tax deductions too.
The deductions available under Section 80 are:
Section 80 D
Under this Section one can claim deduction on premium paid against health insurance taken for self, spouse, children, parents (above sixty or below). The policyholder can claim a maximum deduction of Rs. 25,000 in case of self, spouse and children. Additional Rs. 25,000 can be claimed for medical insurance for parents who are below 60 and Rs. 50,000 if parents are above 60 years of age.
Under this Section one can claim tax deduction up to Rs. 75,000 to Rs.1,25,000 on the rehabilitation expenses or medical treatment of the handicapped dependent. Depending upon the disability of the dependent, an individual can claim the deduction on providing the disability certificate.
Under this Section any individual or any Hindu Undivided Family (HUF) can claim a maximum deduction of Rs, 40,000 for treatment of certain specific ailments for himself or any of the dependents.
Under this Section, one can claim deduction on the payment of interest on the education loan. There is no limit except that the interest paid towards the education loan can be claimed as a deduction.
First time home buyers can get a deduction on the interest paid towards their home loans. The maximum deduction that they can claim is Rs. 50,000 on their home loans.
This Section allows deductions paid towards any social cause which is eligible for a tax deduction of 50% to 100%.
Section 80 GG
Those who are not entitled to get a deduction on HRA, they can claim deduction under this Section if the individual and their spouse do not stay in their own residential house and live in rent.
Section 80 GGB and 80GGC
An individual can claim a tax deduction equal to a donation done against any political party or electoral trust under this Section. The maximum deduction that can be claimed depends upon the donation that is done to the party in a cashless mode.
Under this Section one is entitled to a maximum deduction of Rs.10,000 against the gross interest earned on Savings Account which does not include FDs or RDs.
Persons who suffer from disability can claim a maximum tax deduction of Rs. 75,000. This can also go up to Rs. 1,25,000 depending upon the disability.
This is a Section where one can claim deduction on the Royalty or Patent Income to a maximum of 3 lakhs.
Those who have a home loan can earn tax exemption on the interest earned, which can be up to 2 lakhs under Section 24 (b).
House Rent Allowance
Salaried employees can seek benefits on this component if they stay in a rented home. The actual exemption received shall be lower than the actual HRA.
Other exemptions from salaries
One can claim other exemption from salary besides HRA. They can avail Leave Travel Allowance, Meal Coupons, Conveyance Allowance, Medical Allowance etc.
Tax exemption on gifts and wills
Money received on gifts and wills are completely tax-free, and there is no upper limit to this exemption.
Thus, this can be stated that one need not just depend upon Section 80 C to claim tax benefits. Other sections can also help in decreasing the tax outgo amount.