Have you already consumed your section 80C for income tax benefit and now looking for section 80C alternatives to save taxes? Do you know that there are various ways one can save taxes beyond section 80C? In this article I will guide you to save more income tax even after you have invested for 80C benefit options. Mostly people even don’t know that there are such options available where they can save some additional tax besides the regular way to saving tax in India.
- 1 Best Tax Saving Options Other Than 80c in 2017
- 1.1 Section 80CCD – Deduction for Investing in Pension Schemes
- 1.2 Section 80E – Interest Paid For Education Loan
- 1.3 Section 80D – Deduction for Medical Insurance Policy
- 1.4 Section 80DD – Deduction for Treatment Cost of Disabled Dependent
- 1.5 Section 80DDB – Deduction for treatment of special disease
- 1.6 Section 80GG – Deduction for House Rent Allowance
- 1.7 Section 80GGC – Deduction for Donation
- 1.8 Section 80G – Deduction for donations towards Social Causes
- 1.9 Section 80CCG – Rajiv Gandhi Equity Saving Scheme (RGESS)
- 1.10 Section 80TTA – Deduction for Interest Income from Savings account
- 1.11 Section 24 – Interest paid for Home Loan
- 1.12 Section 80EE – Extra 50,000 deduction on Home loan interest
- 2 Conclusion of Best Tax Saving Options Beyond 80C
Best Tax Saving Options Other Than 80c in 2017
All these options are not actually investment option. Rather various situations in life and benefits for which you can get additional tax saving opportunities. Let’s explore them one by one. Although I have mentioned very short and to the point about every section, rather than explaining in detail. You can always refer to official Income tax India website to about each section in detail and improve your knowledge.
Section 80CCD – Deduction for Investing in Pension Schemes
One can invest in pension schemes and get income tax deduction under section 80CCD. E.g. if you have invested for Atal Pension Yojna or NPS then you will be eligible to save extra tax as per the section 80CCD. You can enjoy an additional Rs 50,000 deduction under section 80CCD on investment of NPS which is beyond section 80C.
Section 80E – Interest Paid For Education Loan
If you have applied for an education loan for self, spouse, children or someone for whom you are the legal guardian then you can enjoy the income tax benefit on the Interest Paid on Education Loan. There is no limit on this claim, means in a financial year you can claim the entire interest amount paid for education loan.
Section 80D – Deduction for Medical Insurance Policy
This is in-fact a very popular segment beyond 80C. In simple terms if you purchase a health insurance policy for your family, you can claim the premium paid for Medical Insurance purchased for direct dependents like spouse, children up to a limit of Rs 25,000. An additional rs 25,000 deduction is also allowed for including parents. If you are Sr. citizen, then you can get deduction up to Rs 30,000. In fact you can also claim up to Rs 5000 for preventive health check ups. This is one of the best 80C alternative.
Section 80DD – Deduction for Treatment Cost of Disabled Dependent
If any of your dependent is disabled, then you can utilized this section to claim the treatment costs related to disability up to a limit of Rs 75,000. In case the disability is severe the limit is up to Rs 1.25 lakh.
Section 80DDB – Deduction for treatment of special disease
If you or your dependents are suffering from any special disease listed as per income tax rule 11-DD, then you can avail this section 80DDB and get tax exemption on the treatment expenses up to Rs 40,000. In case the person is of 60 years above then the limit will be up to Rs 60,000 and if the age of person is more than 80 years then the exemption limit is up to rs 80,000.
Section 80GG – Deduction for House Rent Allowance
If you don’t avail the house rent allowance benefit or if your company doesn’t provide HRA benefit then you can utilize the section 80GG and avail house rent allowance as per rules mentioned in one of my previous article.
Section 80GGC – Deduction for Donation
This section is for those who donate fund to political parties. There are few other sub section related to this donation from individual and corporate, which you should find in income tax India official website.
Section 80G – Deduction for donations towards Social Causes
The various donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. 80G deduction not applicable in case donation is done in form of cash for amount over Rs 10,000.
Section 80CCG – Rajiv Gandhi Equity Saving Scheme (RGESS)
From next financial year, this scheme will not be available for further subscription. Govt has stopped continuing this scheme during budget 2017.
Section 80TTA – Deduction for Interest Income from Savings account
You can get a Rs 10,000 deduction for interest income earn from your bank deposits, FD schemes, post office savings scheme together for a financial year. If you cross the limit of Rs 10,000, then you have to pay taxes under income from other sources for the extra amount as per the current tax slab rate.
Section 24 – Interest paid for Home Loan
If you have purchased your dream home and took a home for the same, you can get up to Rs 2 lakh deduction under section 24. This will also club with your rental income in case you let out the property and set off value will be allowed to enjoy deduction. In case of self-occupied property, you can consume the maximum Rs 2 lakh interest paid in a financial year.
Section 80EE – Extra 50,000 deduction on Home loan interest
This section was launched to give an additional benefit to first time home buyers. But during this budget, there is not a single discussion about section 80EE, that means this benefit will be applied to 1st April 2016 to 31st march 2017. People who took home loan up to 35 lakh and property value up to 50 lakh, will be able to get this additional 50,000 deduction. For more details, you can follow income tax India website for latest changes in rules.
Conclusion of Best Tax Saving Options Beyond 80C
So, did you explore these tax saving options beyond 80C? I am sure if you are planning to save extra tax after consuming entire limit of section 80C, you will find this article very useful. Although I have shared a very basic overview of every section, you should read the complete details, specific terms & conditions to understand the clauses before utilizing them to save income tax. You may notice that all are not about Investment options.
Whatever I have shared here, its as per knowledge & understanding. I am not a CA or income tax expert though. But you should consult a CA, if you think you want to understand these clauses better or don’t want to put your brain too much understanding these things and want to utilize them to save additional taxes in India. Share your experiences or feedback about these 80C alternatives if any, by writing a simple comment below. This will make this article useful for readers. Please share the same in Facebook with your friends & family. Thanks for reading & sharing this article.