Save Tax beyond 80C: 80D, 80E, 80EE, 80GG, 80TTA, 80DD, 80DDB, 80G, Section 24, NPS

Haven’t done any income tax savings yet? There are nearly 2 months left i.e. until 31Mar’24. If you invest in them, you can save on taxes. You only have until March 31st for tax savings in a financial year. January’24 is already coming to an end at the time of writing this article. In this case, last-minute savings can save you from tax deductions. Usually, when it comes to income tax savings, Section 80C comes to mind first. However, apart from 80C, there are 10 other options, and if you invest in them, none of your money will be deducted in taxes.

The most popular way to save income tax is through 80C, but most savings plans fall within its scope, and the deduction is only available up to 1.5 lakh rupees. However, there are several options in which if you invest, not a single penny will be deducted, and if deducted, it will definitely be refunded.

(1) National Pension System

In the National Pension System (NPS), you save tax up to 1.5 lakh rupees under Section 80C, but you can also save an additional 50,000 rupees under Section 80CCD (1B). This means you can save up to a total of 2 lakh rupees.

(2) Health Insurance (80D)

Section 80D allows you to claim health insurance premiums. The amount of tax deduction under 80D depends on who is covered by the policy and their age. This way, you can claim tax savings of up to 25,000 rupees, 50,000 rupees, and 1 lakh rupees.

(3) Education Loan (80E)

If you have taken a loan for your children’s education, you can claim tax deduction on its repayment. Section 80E allows tax deduction on the interest component of education loans. There is no limit to this tax deduction, and you can claim tax deduction on as much interest as you have paid.

(4) Home Loan Interest (Section 24)

You can claim tax deduction on home loan repayment in two ways. You already get a tax deduction of 1.5 lakh rupees under 80C for the principal amount, and you can also claim deduction on the interest component under Section 24. Under this section, you can claim a maximum tax deduction of up to 2 lakh rupees, provided the property is in your name and you reside in it. If you do not reside in the house and have rented it out, there is no limit to the tax deduction, meaning the entire interest paid during the year will be eligible for tax deduction.

(5) First-time Home Buyers (80EE)

The government provides additional tax deduction on home loan interest under Section 80EE for first-time home buyers, subject to certain conditions. Under this section, you can claim an additional tax deduction of up to 50,000 rupees. This deduction is in addition to the deduction under Section 24. This means first-time home buyers can get a tax deduction of up to 2.5 lakh rupees on home loan interest in a year. The property value must be less than 50 lakh rupees and the loan amount should be less than 35 lakh rupees.

(6) HRA (80GG)

If you are salaried and receive HRA from your company, you can claim tax deduction on rent. However, if you do not receive HRA, you cannot claim tax deduction on house rent. In such cases, the government provides the option of Section 80GG.

(7) Savings Bank Interest (80TTA)

You can also claim tax deduction on savings bank account interest. Under Section 80TTA, an individual or HUF can claim a tax deduction of up to 10,000 rupees. This deduction is available for bank, cooperative society, or post office savings accounts. This tax deduction is available to everyone, and there is no age limit.

(8) Disabled Medical Expenses (80DD)

If you take care of a disabled person, you can claim tax deduction on the expenses incurred under Section 80DD. Any family member of the disabled person, such as parents, children, or siblings, can be eligible. The amount of tax deduction depends on the disability of the disabled person, ranging from 75,000 rupees to 1.25 lakh rupees.

(9) Specific Medical Treatment (80DDB)

The government provides tax deduction of up to 40,000 rupees under Section 80DDB for the treatment of specific illnesses such as cancer, neurological disease, or AIDS. In the case of senior citizens, this tax deduction is up to 1 lakh rupees.

(10) Donations (80G)

If you make charitable donations, you can also save tax on them. Donations made to approved charitable organizations come under the purview of tax deduction under Section 80G. However, full donations are not eligible for tax deduction.


Nikesh-Mehta-AllOnMoney

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].


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