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Key Highlights
- Tax saving is crucial to manage your finances.
- Section 80C is a popular tax saving instrument but offers deductions only up to ₹1.5 lakhs.
- You can save more money on taxes with these tax saving options other than 80C without any hassle.
- Always know which sections are applicable under the old and new tax regimes to claim maximum deductions.
How to Save Tax Other Than 80C?
Section 80C is a well-known tax-saving section in the Income Tax Act 1961that allows tax deductions by permitting certain investments and expenses to be tax exempt. However, you can save tax only up to ₹1.5 lakhs with 80C. Therefore, you must also be aware of tax saving schemes other than 80C to lower your tax liabilities.In this blog, let's learn about tax saving options other than 80C and how to save income tax other than 80C.
Income Tax Exemption Limits for Different Sections
The Income Tax Department of India offers certain tax exemptions through various sections under the old tax regime. You can utilise them to save additional income tax other than 80C.
| Section | Maximum Exemption Limit |
| Section 80CCD | ₹50,000 |
| Section 80D | ₹25,000 for self ₹50,000 for self+ wife + dependent children+ parents ₹75,000 if you are below 60 years of age, but your parents are above 60 years ₹1,00,000 if you and your parents are above 60 years |
| Section 80DD | ₹75,000 for 40-80% disability ₹1,25,000 for more than 80% disability |
| Section 80E | No maximum limit. Applicable on actual interest on an education loan |
| Section 80EE/80EEA | ₹50,000 and ₹1,50,000 on home loan EMI’s interest |
| Section 80G | No capping on bank transfers ₹2,000 for cash donations |
| Section 80GG | The maximum exemption is capped at the least of the three: -₹5,000 monthly or -25% of your adjusted gross total income or -actual rent minus 10% of your basic salary |
| Section 80TTA | ₹10,000 ₹50,000, u/s 80TTB if you are above 60 years of age |
| Section 10(10D) | Amount received upon maturity or death (conditions applied) |
| Section 24 | ₹2,00,000 for self-occupied property Actual interest for a rented or non-occupied property |
Let us understand these exemptions in details.
10 Tax Saving Options Other Than 80C
Here are some tax saving investment options other than 80C that offer you deductions and exemptions:
Section 80CCD: Tax Deduction for Contributions to National Pension Schemes (NPS)
If you are a salaried employee or self-employed, you can save up to ₹50,000 by investing in the National Pension Scheme (NPS). NPS is a retirement saving scheme that allows you to save tax other than 80C. This deduction is over and above ₹1.5 lakhs given with 80C. Also read: NPS Income tax deductions under section 80CCD
Section 80D: Tax Deductions for Health Insurance Premiums and Medical Expenses
If you are looking for popular tax saving Investments other than 80C, you cannot miss section 80D. It offers tax deductions of up to ₹25,000 on health insurance for yourself, your spouse, and dependent children (less than 25 years old).You can also claim deductions on your parent’s health insurance if you pay for it. Here are the three scenarios for maximum deductions allowed: Also read: Section 80D: Tax Deductions & Everything You Need To Know
Section 80DD: Tax Deduction for Expenses on Medical Treatment and Rehabilitation of Disabled Dependents
In case you have a differently-abled dependent family member, you can claim their health insurance premium as deductions other than 80C. Under section 80DD , you can claim up to ₹75,000 for 40-80% disability and ₹1,25,000 for more than 80% disability.
Section 80E: Tax Deduction for Interest on Education Loan
You can claim a tax exemption other than 80C on the interest amount of an educational loan for higher education for yourself, your spouse, or your children. Section 80E applies for domestic and international studies for the initial eight years of loan repayment.
Section 80EE/80EEA: Deduction for New Home Loan Interest Payments
If you are searching fortax free investments other than 80C and buying a home, you can now combine your goals. Under section 80EE/80EEA, you can claim a deduction of ₹50,000 and ₹1,50,000 on your home loan EMI’s interest. This tax saving options other than 80Cworks in addition to Section 24.
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Section 80G: Deduction For Donations Made to Charitable Organisations
Section 80G offers tax saving other than 80C on donations made to registered charitable institutions. Deductions on donations made in cash are capped at ₹2,000, while there’s no cap on bank transfers.
Section 80GG: Deduction for Rent Paid
Popular tax saving instruments other than 80C include Section 80GG, which provides a deduction on your house rent if you do not receive a house rent allowance (HRA) from your employer.
- ₹5,000 monthly or
- 25% of your adjusted gross total income or
- actual rent minus 10% of your basic salary, whichever is the least.
Section 80TTA: Deduction on the interest earned on savings accounts
Some tax saving options other than 80C allow you to claim a deduction on interest earned on your savings account and/or fixed deposits.Section 80TTA allows a deduction of up to ₹10,000. However, if you are over 60, you can claim a deduction up to ₹50,000 under Section 80TTB.
Section 10(10D)
If you or your family members have a life insurance policy taken after 2012 or the premium expense is less than 20% of the total sum insured (in case the policy was taken before 2012), you can claim a tax deduction upon maturity or in the unfortunate event of death.
Section 24
If you want tax saving options other than 80C, you can claim an additional tax deduction on the home loan interest. For a self-occupied property, you can claim ₹2,00,000 and actual interest for a rented or non-occupied property.
Utilising Tax Saving Options Other Than 80C
It is essential to be aware of tax saving options other than 80Cto minimise your tax liabilities legally. With proper planning and execution, you can save a lot of money by claiming deductions provided by the Income Tax Department.Stay abreast of the latest tax-related information that may affect your financial future with Aditya Birla Capital. Visit us now !
FAQS - FREQUENTLY ASKED QUESTIONS
How to save tax other than 80c?
You can avail of one or all of the following tax saving options other than 80C under the Income Tax Act 1961:
Section 80CCD
Section 80D
Section 80DD
Section 80E
Section 80EE/ 80EEA
Section 80G
Section 80GG
Section 80TTA/ 80TTB
Section 10(10D)
Section 24
Can I claim both 80D and 80C?
Yes. You can claim up to ₹1,50,000 under Section 80C and up to ₹75,000 under Section 80D (₹1,00,000 for senior citizens). Thus, Section 80D provides tax saving options
Am I eligible for section 80EE/ 80EEA if I own a house?
No. If you are a first-time home buyer, you can only use section 80EE/ 80EEA, one of the popular tax saving options other than 80C.
Can I claim a deduction through tax saving options other than 80C in the new tax regime?
Under the new tax regime, you can only claim a standard deduction of ₹50,000 from your salary and tax saving options other than 80C under section 80CCCD(2) for the employer's contribution to employee NPS accounts.
What is the difference between Section 24, 80EE, 80EEA, and 80C for home loan deductions?
To minimise your tax liabilities, you must understand the difference between Section 80C and tax saving options other than 80C, like Section 24, 80EE, and 80EEA, which are.
Particular
Tax Benefit
Maximum Benefit Amount
Interest on home loan
Deduction under section 24(b) of the Act
Self-occupied property– up to ₹2,00,000
Let-out property – Actual interest paid
Interest on home loan
Additional deduction under section 80EE of the Act
Up to ₹50,000
Interest on home loan
Additional deduction under section 80EEA of the Act
Up to ₹1,50,000
Repayment of Principal of home loan
Deduction under section 80C of the Act
Up to ₹1,50,000
Can I use tax saving options other than 80C for health insurance?
Yes, you can claim deductions of health insurance premiums under Section 80D for yourself, your spouse, children, and parents.
Can I invest in LIC under 80D?
Section 80D offers tax saving options other than 80C, allowing tax exemption to pay the health insurance premiums of a differently abled family member.
What is the 80G limit as tax saving options other than 80C?
Under Section 80 G, you can claim a maximum of 50% or 100% of the donated amount, depending on the institution or fund to which the donation has been made.
Can I show term insurances in 80D as tax saving options other than 80C?
You can avail of term insurance tax benefits under 80D if you have opted for health-related riders, like Critical Illness cover, Surgical Care cover, etc.
Are donations paid in cash allowed as tax saving options other than 80C?
Donations less than ₹ 2,000 in cash are eligible for deduction under Section 80G.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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