ITR Filing Tips: 7 tax saving options other than mentioned in Section 80C that can help you save lakhs
Tax Saving Strategy: Contributions to an NPS Tier I account, health insurance premiums, and home loan interest are some of the tax saving options other than those mentioned in Section 80C of the Income Tax Act, 1961.
Tax saving strategy, tax saving options other than Section 80C: The income tax filing deadline of July 31, 2024, is just a week away. Taxpayers are filing their ITR under the new or the old tax regime. People following the old tax regime find Section 80C of the Income Tax Act, 1961, to be an effective tool to save income tax. Section 80C gives tax exemption up to Rs 1.50 lakh in a financial year, which is quite a substantial amount for somebody even in the Rs 12 lakh annual salary bracket. But Section 80C is not the only section that helps with tax saving. There are many other sections that help you reduce your income tax to a great deal. If used wisely, these sections can help you save tax worth lakhs in a financial year. We are discussing seven of them here-
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Interest on housing loan under Section 24(b)
One can save up to Rs 2 lakh a year with regards to interest on a housing loan.
NPS deduction under Section 80CCD (1B)
While an NPS Tier-I accountholder can take the benefit of Section 80C, they also get a Rs 50,000 extra tax benefit under Section 80CCD (1B).
Health Insurance Premium under Section 80D
One gets a tax benefit of up to Rs 25,000 towards payments made to the health insurance premium for self, spouse, and children. Apart from that, Rs 50,000 can be claimed for medical insurance premiums paid for senior citizen parents.
Rent payment under Section 80GG
You can get a tax exemption on the rent you pay to your landlord. Tax exemptions vary from city to city. However, the lower limit of rent is Rs 5,000 a month, or the total annual income of 25 per cent, or 10 per cent of the basic annual income.
Treatment of specified illnesses under Section 80DDB
One can get tax benefits up to Rs 40,000 on the cure of specified illnesses. The same limit for senior citizens is Rs 1,00,000.
Education loan interest payment under Section 80E
There is no maximum limit on the interest on an education loan.
For handicapped tax-payers
Handicapped taxpayers can claim extra tax benefits under Section 80U. They can claim a Rs 75,000 tax exemption for a 40 per cent to 80 per cent disability, while they can claim a Rs 1,25,000 tax exemption for a higher than 80 per cent disability.