Tax Saving Options In India Other Than Sec 80C & 80D

We read so much on taxes these days. However, it turns out we keep reading some repetitive tax rules. If you’ve already delved into the intricacies of Sections 80C & 80D, it’s time to broaden your understanding. So, let’s analyse some other important tax-saving sections of the Income Tax Act. Keep reading to find out about some other great tax-benefit Sections the government has to offer you.

Tax-Saving Section

Here are some tax-saving sections you will always have to know:

1. Section 80CCD

Individuals who contribute to National Pension Schemes (NPS) can claim tax deductions under Section 80CCD of the Income Tax Act. This rule covers employees, employers, and voluntary self-contributions. Section 80CCD(1b) allows taxpayers to deduct up to ₹50,000 for self-contributions to NPS or Atal Pension Yojana. This is over the Rs. 1,50,000 deduction limit under Section 80C. Individuals who contribute to the NPS can lower their taxable income while also encouraging retirement savings.

2. Section 80D

Section 80D of the Income Tax Act permits people to deduct health insurance premiums and medical expenditures. The deduction limitations vary depending on the age and kind of taxpayer.

3. Section 80DD

HUFs and individuals who pay for a handicapped family member’s treatment and well-being are entitled to Section 80DD exemptions on the total amount paid. Individuals with 40-80% disability qualify for a discount of Rs. 75,000. Families caring for individuals with a handicap of more than 80% might get Rs. 1.25 lakh to cover all relevant expenditures. This benefit is limited to the dependent individual’s family.

4. Section 80DDB

If you pay for the treatment of a family member diagnosed with one or more particular diseases, you may be entitled to a tax break. Individuals under 60 can get a maximum of Rs. 40,000. Senior people (60-80 years old) and super seniors (above 80 years old) will now receive a Rs. 1 lakh waiver.

A waiver may be granted for the treatment of serious illnesses such as malignant cancer, chronic renal disease, AIDS, hematological disorders, and neurological diseases (producing 40% or more incapacity).

5. Section 80E

During the fiscal year, the interest portion of the EMI is subtracted. There is no maximum amount that can be deducted. A bank certificate, however, is necessary. This certificate should divide the principal and interest components of the education loan you paid this fiscal year. The whole amount paid in interest will be deductible. No deductions will be permitted for principal payments. An education loan can be unsecured or secured, depending on the amount of cash necessary.

However, it is crucial to remember that such exemptions will only be applied to the first eight years of debt repayment. After eight years, the interest will be taxed.

6. Section 80EE

If the property value is less than Rs. 45 Lakh, first-time home-buyers can claim extra interest benefits up to Rs. 50,000 over Section 24(b) on home loan installments. This essentially saves up to Rs. 2.5 Lakh in taxes, in addition to the Section 80C deduction.

To qualify for a tax rebate on installment or EMI payments under Section 80EE, an applicant must not have held any other property prior to applying for a home loan.

7. Section 80G

Section 80G exempts the whole payment to a charitable organization from taxation. If the transfers were made through a bank, there is no limit to these tax breaks. Cash gifts of up to Rs. 2,000 per year are tax-exempt. However, any payments must be made to a recognized charity organization.

8. Section 80GG

Section 80GG enables you to claim exemptions on your total taxable income if your employer does not include the HRA component in your compensation schedule.

9. Section 80GGA

Section 80GGA allows taxpayers to claim tax breaks for gifts to scientific research and rural development. Such deductions can be taken on all of the income spent as long as it was done through a bank account and verified.

10. Section 80 GGB

Section 80GGB of the Income Tax Act 1961 states that any Indian corporation that donates to a political party or even an electoral trust registered in India may deduct that amount from its income tax burden.

11. Section 80 GGC

The 80GGC can be claimed by any individual, with the exception of municipal governments or artificial juridical persons who receive government support in whole or part.

Individuals, Hindu Undivided Families (HUF), businesses, AOPs, BOIs, and Artificial Juridical Persons are all entitled to make contributions under Section 80GGC. However, the government should not subsidize Artificial Judicial Persons.

12. Section 80TTA

A maximum of Rs. 10,000 could be withheld from the net total interest generated on savings accounts at the bank and/or post office. FDs, RDs, and corporate bonds do not contribute to interest income.

Multiple savings accounts at multiple banks are classified as a single account, and the accumulated interest is taxed as ‘income from other sources.’ If interest income exceeds Rs. 10,000 in a year, the excess is taxed at rates based on total yearly income.

13. Section 80U

Section 80U permits handicapped people to seek tax breaks if they are confirmed by a competent medical authority as being 40% disabled. Individuals with 40% to 80% disability can claim Rs. 75,000, while those with more than 80% can collect Rs. 1.25 lakhs in tax advantages.

14. Section 24(b)

Your home loan interest payments might also be tax deductible. Section 24(b) allows tax-free interest of up to Rs. 2 lakhs for works completed within five years of the loan period.

15. Section 10(13A)

Salary-earning employees may be eligible for House Rent Allowance as part of their remuneration. If you rent a house, you can claim an HRA exemption. You may seek an exemption up to the lowest of the following:

• Amount of HRA received
• 50% of your wage if you reside in a metro city and 40% if you live in a non-metro city.
• Rent is paid at 10% of annual wage.

Conclusion

When you happen to get done with Section 80C and Section 80D, there’s so much more you are just not looking at. It is best to always revise deductions and exemptions to make the best out of your money.