As a taxpayer, the first thing that comes to your mind when you think of income tax savings is the section 80 C of The Income Tax Act. Most people are aware about the type of deductions available under the Section 80C. Many of you will be surprised to know that there are several other tax deduction options available apart from those related to Section 80C.
At times, the tax savings provisions under 80C are not enough to save adequate amount of taxes. If you think you have exhausted your 100% income tax limit under the provisions of 80 C, then you are wrong. You can save some more tax using other income tax provisions of the income tax law such as:-
- Section 80D– Tax deduction under section 80D qualifies for mediclaim policies. The premiums paid under individual and family medical insurance policy comes under this section. Exemptions are allowed annually for self, spouse and dependent parents/children for maximum amount of up to Rs 15,000. In case of a senior citizen, the maximum amount extends up to Rs 20,000.
- 80DD: To provide some relief against the rising medical treatment costs, the Government of India made provisions to provide some relief to those who have a dependent with disability or sever disability under section 80DD of the Income Tax Act. If the person is suffering from 40 per cent of any disability, a fixed sum of Rs 50,000 can be claimed in a year. Similarly, if the disability is 80 per cent, the fixed sum goes up to Rs 1, 00,000 per year.
- 80E:- This section pertains to tax exemption on education loans. The interest paid on loans taken for pursuing higher education for yourself or any dependant is exempted from tax under section 80E. This deduction is applicable for a period of 8 years or till the interest is paid, whichever is earlier. However this exemption relevant only for full time graduate or postgraduate courses.
- 80GG:- Under this section you can claim tax deductions on grounds of paying rent. If you are a salaried or self-employed and staying in rented house, you can claim a deduction under this section if you do not receive any kind of house rent allowance. Under this section you can claim 25% of your total income or 2000 per month, whichever is greater.
- 80CCG:- Deduction under section 80CCG is a new scheme that was introduced to encourage flow of saving in financial instruments. It is known as the Rajiv Gandhi Equity Savings Scheme and is named after the former Prime Minister of India. Under this scheme you are eligible for a deduction up to 50 % of the amount invested in such equity shares or ₹ 25,000, whichever is lower.
In addition to this, there are numerous life insurance plans such as iMax and iReturn which offer taxation benefit under the Section 10D of the Income tax act. So make a wise choice by browsing through different investment products and say goodbye to your tax worries today.