Tax Saving Options Other Than 80C in India – A Complete Guide

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The most popular tax-saving option of the Income Tax Act of 1961 is Section 80C. Under this section, you can avail of rebates of up to INR 1.5 lakhs on various loan products and even investment tools. Nevertheless, what we do not pay much heed to are the instruments other than Section 80C that can help you save taxes.

Interest components paid for education loan

Under Section 80E, the income that you spend to meet the interest component of education loans is not taxable. You can avail of such an education loan against collateral. However, it depends upon the funds that are needed. You must know that such waivers are granted for the initial eight years of the loan repayment. It is one of the most sought-after options for tax-saving other than 80C.

Interest component paid for home loans

Under Section 24(b), the interest that you pay on a home loan can be removed from the income tax calculations. If you buy the house to live in it, you can claim a maximum of INR 2 lakh as a tax rebate on the rate of interest. However, the construction has to be completed within five years of the loan tenure. If you let the property on rent, tax need not be paid on the interest component of the home loan.

Donations to charitable organizations

Under 80G, if you donate your income to charitable organizations are exempted from tax calculations. There is no limit on such tax waivers, provided you make the transfers through banks.

Donations you make for scientific research and rural development

Under Section 80GGA, if you make donations for scientific research and rural development, you can claim tax waivers on the same. 100% of the income you spend is eligible for such deductions. However, for this, you have to make the transaction through a bank account. You should try to keep everything documented. This is one of the income tax saving options other than 80C of income tax.

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Donations you make for political parties

Under 80GGC, the donations that you make to political parties are also tax-saving options apart from the 80C deduction. The entire contribution can be waived off from tax calculations. However, make sure you make the transaction through wired bank transfers. You also need to ensure that the political party to which you are contributing is registered under Section 29A of the Representation of People Act (RPA) of 1951.

Some of the tax saving options other than 80C

Here are some of the popular income tax saving options other than 80C, which you must be aware of.

Sections Exemption Limit What They Deal In
80CCD INR 50,000 Contributions to National Pension Schemes (NPS)
80DD

INR 75,000 for people with 40% to 80% disability

INR 1,25,000 for people with higher than 80% disability

Expenses on a handicapped dependent
80D

Up to INR 25,000 for oneself + family (including spouse and child).

Up to INR 50,000 for oneself and family + parents

Up to INR 75,000 for Oneself and family (below 60 years) + Parents above 60 years of age

Up to INR 1,00,000 for Oneself and family (with members above 60 years) + Senior Citizen Parents

Health insurance premiums
80E No limit Education loan interest payment
80DDB INR 40,000 (INR 1,00,000 for senior citizens) Treatment of specified illnesses
80EE Up to INR 50,000 Home loan interest payment for first-time home-owners
80G No Limit Donations to approved charitable institutes
80GG

Lower of the following –

INR 5000/month

The total annual income of 25%

10% of the basic annual income.

Rent paid by employees not having HRA
80RRB Up to INR 3 lakhs Royalty or patent income
80GGA No limit Donations for Scientific Research and Rural Development
80GGB No limit Donations Made to Political Parties or an electoral trust. (Indian companies are eligible to claim benefits)
80GGC No limit Contributions made to a political party
80U

INR 75,000 for 40% to 80% disability

INR 1,25,000 for higher than 80% disability

Handicapped tax-payers can claim this deduction
80TTA and 80TTB

80TTA – Up to ₹10, (individuals below 60 years)

80TTB – Up to ₹10,000 for senior citizen

Saving account interest

Now, that you know the options for tax deduction other than 80C, you can use them wherever needed and avail of the benefits.

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FAQs: Tax Saving Options Other Than 80C

What are some of the options for tax-saving options other than section 80C?

Apart from Section 80C, there are several tax-saving options. Some examples are home loan EMIs, health insurance, interest from savings accounts, etc.

Where should someone invest to save tax other than 80C?

To save tax other than 80C, you can invest in Equity Linked Savings Scheme (ELSS) funds, Unit Linked Insurance Plans (ULIPs), the National Pension System (NPS), Sukanya Samriddhi Yojana, Tax-saving Fixed Deposits, etc.

Which investment is completely tax-free?

A totally tax-free investment is Public Provident Fund (PPF) since it is government-sponsored.

Other Investment Products

Mar 02, 2023
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