Several investment instruments such as life insurance premiums, fixed deposits, ELSS schemes, and PPF Contributions are liable for tax benefits under Section 80C. But, the question here is – Is there any other tax-saving options beyond Section 80C?
So, the answer is ‘YES’, there are several other sections, too, which gives you additional tax-exemption benefits. Thus, without wasting much of time and energy, let’s move on and see what other sections liable for tax deductions are.
Under Section 80D, tax payers can avail deductions up to Rs.25000 for the premiums paid against the mediclaim policy. Furthermore, additional deductions of up to Rs.25000 to Rs.50000 can be availed if the mediclaim policy has been brought for the parents aged below 60 years or above 60 years, respectively.
Deduction under Section 80DD is available to the tax payers for the expenses incurred on the medical treatments of handicapped or differently-abled dependents. An individual can avail maximum benefits from Rs.75000 to Rs.125000, subject to the extent of disability. However, to claim the tax benefits, you need to submit the certificate issued by the medical authority along with form 10-IA at the time of filing tax return.
An individual or a member of Hindu Undivided Family (HUF) can avail tax benefits of Rs.40000 under Section 80DDB for incurring expenses towards medical treatment of specified diseases for self, spouse, children, or/and dependent parents and siblings. However, in case both the tax payer and dependent is a senior citizen, they can ask for tax exemptions of up to Rs.1 lakh. Some of the medical conditions covered for the tax exemption include neurological diseases, AIDS, malignant cancers, and hematological disorders.
This one of the popular tax-saving options beyond Section 80C, under which an individual can claim benefits on the interest paid against the education loan. There is no specific limit for the deductions under Section 80E and thus, a tax-payer can claim exemptions for the total interest paid on education loan for the financial year. However, deduction under Section 80E is available only for up to 8 years from the year in which the interest payment began.
A tax payer can claim tax deductions up to Rs.50000 under Section 80 EE for payment of housing loan interest. However, to avail the benefits, it is essential to fulfill certain conditions such as the housing loan should be less than Rs.35 lakhs, market value of the property must be below Rs.50 lakhs, and the property purchased should be in the name of the tax payer.
Under Section 80G, an individual can claim benefits for the expenses incurred against the contributions made to the charitable trusts and funds like PM Drought Relief Fund, the National Defence Fund, Jawaharlal Nehru Memorial Fund, Namami Ganga Fund, Swachh Bharat Kosh, and so on. Deductions can be made for up to Rs.2000 for a financial year.