Income Tax Calculator: Top 5 Tax Saving Options Apart From Section 80C Benefits

Here we list down the top 5 tax saving options available apart from section 80C of the Income Tax Act:

1]NPS: In the National Pension System (NPS) scheme, a earnings person is given extra 50,000 tax deduction under section 80CCD(1B). Therefore, if one earning person has ended 1.50 lakh per annum Investment limit, he can claim income tax exemption on one’s investment in NPS account under this section. The maximum tax exemption a person can claim under this section is 50,000 investment in a financial year.

2]Health Insurance Premium: under Section 80D As per the Income Tax Act, a taxpayer can claim tax exemption on the premium paid on health insurance during the assessment cycle. discounts range from 25,000 onwards 1 lakh in a financial year. A taxpayer can claim tax exemption on health insurance premium paid 25,000 if he is below 60 years of age. If the taxpayer is paying health insurance premiums for his or her parents, WHO is below 60 years of age, in that case the taxpayer can claim additional tax exemption 25,000 Health insurance is paid for the parents.

In case the parent is a senior citizen, in that case the amount goes up to the limit 50,000 per annum. However, in both the cases, both the parent and the child cannot claim tax exemption on the same health insurance premium. However, in case the taxpayer is a senior citizen, 25,000 goes up to the annual limit 1 Lac. So, if a taxpayer is a senior citizen and he is also paying health insurance premium for his parents, in that case the taxpayer will be able to claim tax exemption on the maximum amount. 1 Lac ( 50,000 for himself and 50,000 for parents) under section 80D.

3]Tax Rebate on Home Loan: a taxpayer who is paying home loan EMI, can claim tax exemption up to 2 lakh home loan interest paid in the valuation cycle. However, the home loan borrower must be living in the unit or the unit must be self-occupied.

4]Interest on Savings Account Deposit: Under section 80TTA, a savings account depositor can claim TDS exemption 10,000 interest incurred in a single financial year. This amount is applicable to all bank savings accounts. So, if someone has more than one saving accountthen the taxpayer is advised to make a complete calculation saving account Interest on all bank accounts. In case of senior citizens, the non-taxable limit is 50,000 under section 80TTB.

5]Donation to Charitable Institutions: Under section 80CCC, if a taxpayer has made donation payment to an approved charitable institution, then the person can claim tax exemption under section 80CCC. However, this limit has been fixed in case of donation in cash 2,000. So, in case of donation exceeding 2,000, should be paid through bank cheque. But, paying only through check will not work as you will need the donation stamped receipt by the trust mentioning its address, PAN card with the name of the trust written on it.