Top Tax Saving Options Other than Section 80C
Updated On Dec 27, 2023
Table of Contents
In today’s time when all kinds of expenses are ever-increasing, it is very important for us all to invest and secure our future. In addition to doing financial planning for the future through investment, many people also invest to save taxes or reduce tax liabilities. Yes, you have got us right, there are many tax-saving investment options such as investing under Section 80C. On investing in different plans under Section 80C, individuals are given a tax liability of up to Rs. 1,50,000 as specified under the Income Tax Act of 1961. Apart from Section 80C, there are also available other tax saving options than 80C. Read on to learn more about the same.
Top Tax Saving Options Other than Section 80C
Other tax saving options than 80C will help you to save and reduce tax liabilities. Listed below are some of the top tax-saving options other than section 80C that you can consider while doing an investment:
- Section 80D: One of the most popular tax-saving options other than 80C is section 80D. You can enjoy tax savings on premiums paid towards health insurance plans under section 80D. Under this section, deductions are also applicable on the expenses that are spent towards health care. For individual health plans, the tax savings under section 80D goes up to Rs. 25,000 and if the number of insured members increases, then the tax exemptions can be up to Rs. 1 lakhs.
|
Insured members |
Tax exemptions under 80D |
|
Self and family (spouse+dependant) |
Rs. 25,000 |
|
Self & family + parents |
Rs. 50,000 |
|
Self & family + senior citizen parents |
Rs. 75,000 |
|
Self & family (members above 60 years of age)+ senior citizen parents |
Rs. 1,00,000 |
- Section 80DD: Section 80DD of the Income Tax Act offers tax savings if the policyholder spends a certain amount of money on the treatment of a dependent handicapped family member.
- Section 80DDB: Section 80DDB allows tax deductions of up to Rs. 40,000 if the policyholder spends a certain amount on the treatment of specific diseases.
- Section 80TTA: Under section 80TTA, policyholders can save tax of up to Rs. 10,000 in case there is any income generated through interest rates. However, it is important to note that there is no tax saving offered if the interest amount is generated through fixed deposits.
- Section 80E: With section 80E, policyholders can get tax exemptions that are spent on the repayment of education loans. The tax exemption is allowed on the interest amount.
- Section 80U: As per section 80U, policyholders can enjoy a maximum tax savings of up to Rs. 1,25,000. The tax savings are offered on medical expenses spent towards the treatment of individuals suffering from a severe disability which is more than 80% and who is also affected by several other ailments.
- Section 80G: Section 80G provides tax exemptions if donations are made towards different charitable activities. The limits of tax exemptions that can be claimed are however set by the government of India.
Take Away
Thus, you can consider these tax-saving measures in order to enjoy the maximum benefits of tax savings. You can also explore a number of investment options on the InsuranceDekho website for more information.
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