How to Save Tax in India Other than 80C

How to Save Tax in India Other than 80Chttps://themoneyvalue.com/save-tax-in-india-other-than-80c/Many times people ask me a question, what is an option to save tax in india other than 80 C. We all know 80 C have lots of investment options. Today will talk about to Save Tax in India Other than 80C. I will also not cover the options which available for physically disabled taxpayers &  dependents on them, critical illness etc... I already wrote about them click here to read.

How to Save Tax in India Other than 80C


Tax season is started & many of us getting emails from accounts dept. to submit the proof for investments. I generally saw many times taxpayers ended up with 80 C & pay big taxes.

I mean he/she doesn't see beyond 80C. Saving tax apart from 80C needs a proper understanding of those sections.

We have a lot of option like Interest paid Education loan, National Pension Scheme (NPS), Health Insurance premier. all these over & above the 80C.

If you believe in charity that can also work, there are lot subsections which allowed us to get a deduction for charity.

If you are supporting any political party, donations to such party also deductible from your taxable income.

Let's Understand one by one, each one has different conditions & limit.

I) 80CCD(1B) - Payment made towards National Pension Scheme (NPS)


In Budget of 2015, finance minister introduces new section 80 CCD (1B), this section gives extra deduction ₹ 50,000 for Investment in NPS (National Pension Scheme) Tier 1 account. This limit over & above of ₹ 1,50,000. In fact, you can open an online account. This is one of the plus points for this scheme. Depends on tax slab one may save ₹ 5K- ₹15.5K each year.

More about NPS click here, how it works where they invest etc.

II) 80D- Premium paid on Health Insurance.


This section allows you to take the deduction of premium paid on account of health insurance. You should make a note while taking such insurance.

One can max- claim  ₹60,000  or 65000. This also includes ₹ 5000 for a checkup. Here is quick chart how deduction will be available.

 


III) 80E -Interest paid on Education Loan.


Guess what NO LIMIT for interest paid on education loan.Anyone who has taken an education loan for self, spouse or children, is eligible to claim the tax deduction.

You are eligible to take interest deduction from the year you start paying & it will continue seven more years. In other words, a deduction will be allowed only for eight years.

Loan from Financial Institution & Charitable trust will be considered for deduction. Only recognised degree. You can take education India or abroad. You are eligible for deduction.

IV) 80G Donation to approved charitable funds like Prime Minister Relief Fund, etc


Section cover certain relief funds &  Charitable Trust. Cash donation more than ₹ 10,000 is not allowed.

Donation in kind also not qualify. Depends on the case to case donations specified in section 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G.

To claim a deduction you have mentioned above needs below-mentioned documents.

Name and address  of the Donee
PAN of the Donee
Amount Contributed (ideally any receipt)

V) 80 GGA Donations for scientific research or rural development


This section allowed to for deduction for a donation made for scientific research or rural development. 100% deduction allowed.Cash donation over ₹10,000 is not allowed
  • Any sum paid to a research association which undertakes scientific research, or sum paid to a college, university or any other institution to be used for scientific research and these are all approved by the prescribed authority under section 35(1)(ii)

  • sum paid approved association or institution which undertakes any program of rural development and iapproved under section 35CCA

  • Any sum paid to the Public company, local authority and approved association or institution which undertakes any program of rural development and approved under section 35CCA.

  • Sum paid to notified Rural Development Fund

  • Any sum paid to notified Fund for Afforestation

  • Any sum paid to notified National Poverty Eradication Fund

80 GGC Donations to political parties


No limit for 80 GGC, 100 % deduction.

Donee should not be Artificial Juridical Person who receives funds from the government.Cash payment will not be eligible.

80TTA Interest received in Savings Account


Please note this is not interest on the Fixed Deposit.

This is only applicable for Saving account. Many time people confuse & forgot to mention income on FD's.

80GG For Rent Expenses who do have HRA component in salary

If  HRA is not in your salary component than you can claim deduction under this section.

Section 24 Interest paid on Home loan


Principle covered u/s 80C, most of you all aware.

But Are you aware you can claim Tax Benefit on both HRA & Home Loan – Know How?

There are various options within 80C as well, here I tried to cover options above 80C. if you have any question feel free to connect. If you like my blog don't forget to subscribe.

Are you still waiting for the income refund? ready for tax notice.
Conclusion - 

All these are applicable to salaried, non-salaried individuals. Reading & getting knowledge is important to avoid any kind of trap in tax.

Still, it is advisable to get your CA's opinion before taking any step.

Which deductions are you thinking to take? please comment on the comment box.

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