Tax Saving Options other than 80C

All about Tax Saving Investments other than 80C

Section 80C is the most well-known provision of the Income Tax Act of 1961, under which rebate of up to Rs. 1.5 Lakh is granted on several loan products and other investment tools.

However, you should also be aware of numerous other instruments aiming to reduce your taxable income. Such tax saving options other than 80C allows you to increase your annual savings through substantial income tax returns.

Since the Income Tax Act maintains several provisions for tax returns, an individual might not be aware of the regulations simultaneously. This can cause them to lose out on funds through redundant tax payments, reducing their annual savings respectively.

We aim to help you keep track of your total taxable income by describing the various provisions which are tax-saving other than 80C in a nutshell.

80TTA	Interest income from all bank accounts.	₹10,000
80E	Tax on income spent on interest payments of education loans up to 8 years	No limit
80D	Health insurance premiums	From ₹25,000 up to ₹1 Lakh under some circumstances.
24(b)	Interest repayment on home loans	₹2 Lakh
80EEA	Interest repayment on home loans for first-time buyers	₹50,000
10(10D)	Sum assured on life insurance plans	Entire amount
10(13A)	House rent allowance (if HRA is given in salary break-up)	Specified conditions
80GG	House rent allowance (if HRA is not mentioned in salary break-up)	Specified conditions
80G	Donation to Charity	No limit
80GGA	Donation for scientific research and rural development	No limit
80GGC	Donation to Political parties	No limit
80DD	Treatment of Disabled persons	₹75,000 for 40%-80% disability ₹1,25,000 for higher than 80% disability
80U	Disabled persons	₹75,000 for 40%-80% disability ₹1,25,000 for higher than 80% disability
80DDB	Medical ailments	₹40,000 (₹1,00,000 for senior citizens)

What are the Various Tax Saving Investments Other than 80C?

Income tax saving instruments other than 80C can be listed under the following acts:

1. Interest Income Generated from Savings Account Deposits

Section - 80TTA

Limit – ₹10,000

Total interest income generated from savings account deposits can be claimed under Section 80TTA. Nonetheless, such deduction in taxable income is only limited to ₹10,000 annually.

If you maintain multiple savings accounts in different banks, the total cumulative interest is considered, and is taxed under ‘income from other sources’.

If such interest income exceeds ₹10,000 in a year, only the excess amount over the cap is taxed at rates depending upon aggregate annual income.

2. Interest Component Paid Towards Education Loan

Section - 80E

Limit – No limit

Income spent to meet the interest component of education loans is not taxable under this section. Such an education loan can be unsecured or availed against collateral, depending upon the amount of funds required.

However, it should be noted that such waivers are only granted for the first 8 years of loan repayment. Any income spent to meet the interest burden beyond this time is taxable.

Education loans eligible for such deductions have to be taken in the name of the respective individual and can be utilised to meet the higher education charges of either self, spouse, or children. It is one of the most popular tax saving schemes other than 80C.

3. Premium Payment Towards Health Insurance Policies

Section - 80D

Limit - Depends as per specific conditions

Eligibility	Exemption limit
Health insurance for self and family (spouse and dependent children)	₹25,000
For self and family + parents	₹25,000 + ₹25,000) = ₹50,000
For self and family (below 60 years) + Parents above 60 years of age	₹25,000 + ₹50,000 = ₹75,000
For self and family (with members above 60 years) + senior citizen parents	₹50,000 + ₹50,000) = ₹1,00,000

Provision for tax rebate under Section 80D is extended to health check-up expenses as well. You can claim tax waiver on such costs amounting up to ₹5,000 respectively.

Such exemption is inclusive of the ₹25,000 rebate on health insurance. This means that people who have claimed ₹5,000 as their medical check-up costs are eligible for ₹20,000 rebate on premium charges.

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4. Interest Component Paid Towards Home Loans

Section - 24(b)

Limit – ₹2 Lakh

Interest payments on a home loan can be removed from income tax calculations under this section. If the house is purchased for residence, a maximum of ₹2 Lakh can be claimed as a tax rebate on the interest rate, provided the construction is completed within five years of the loan tenure.

If you choose to let out the purchased property on rent, then no tax has to be paid on the interest component of the home loan respectively.

5. Interest Component Paid Towards Home Loans for First Time Home-Buyers

Section - 80EEA

Limit – ₹50,000 above benefits from Section 24(b)

First-time home-buyers can claim additional interest benefits amounting to ₹50,000 above Section 24(b) on home loan EMIs, provided the property value is less than ₹45 Lakh. This effectively makes way for up to ₹2.5 Lakh tax-saving other than Section 80C.

However, no prior property should be registered under an applicant’s name while availing a home loan to be eligible for a tax rebate on total income spent on EMI payments under Section 80EEA.

6. Sum Assured on Maturity of Life Insurance Plans

Section - 10(10D)

Limit – Entire maturity amount

The entire sum assured disbursed upon maturity of life insurance or untimely death of an insured person can be claimed for tax rebate under Section 10(10D).

However, such death benefit is exempted from tax calculations if it is availed after 1st April 2012, and total value premium charges are less than the full sum assured.

If the policy is availed before 1st April 2012, then the premium expenses should be less than 20% of the total sum assured to be eligible for waivers under section 10(10D).

7. House Rent Allowance Provided Under Salary Break-Up

Section - 10(13A)

Limit – Specified conditions

This provision of the Income Tax Act caters to tax benefits under house rent allowance (HRA), provided your salary break up contains the HRA component. A total exemption granted under this scheme is the minimum value of the following:

Actual annual HRA disbursed.
50% of yearly salary.
Yearly rent paid – 10% of basic income.

8. House Rent Allowance Component Not Included Under Salary Break-Up

Section - 80GG

Limit – Specified conditions

If your company does not include the HRA component in your salary break-up, you can claim exemptions on your total taxable income through Section 80GG. Such tax-saving investments other than 80C grants waivers up to the least value of the listed parameters:

₹5,000 per month.
25% of the total annual income.
Annual rent – 10% of the basic annual income.

9. Donations to Charitable Organisations

Section - 80G

Limit – No limit

Any income donated to charitable organisations is exempt from tax calculations entirely under Section 80G. No limit on such tax waivers are levied provided transfers have been made through banks.

Any cash donations are exempt from tax calculations for up to ₹2,000. However, such contributions have to be made in registered charitable organisations.

10. Donations Made Towards Scientific Research and Rural Development

Section - 80GGA

Limit – No limit

If donations are made for scientific research and rural development, tax waivers on the same can be claimed under Section 80GGA.

100% of the income spent is eligible for such deductions, provided the transaction has been made through a bank account and is documented.

11. Donations Made Towards Political Parties

Section - 80GGC

Limit – No limit

Donations made to political parties are also tax saving other than Section 80C. The entire contribution is waivered from tax calculations, provided it was made through wired bank transfers.

Also, the political party to which such contributions were made has to be registered under Section 29A of the Representation of People Act (RPA) of 1951.

12. Expenses Incurred Towards Treatment of a Disabled Person

Section - 80DD

Limit:

₹75,000 for 40%-80% disability
₹1,25,000 for higher than 80% disability

Individuals and Hindu Undivided Families (HUF) paying for the treatment and wellbeing of a disabled family member can claim exemptions on total income spent to cover such expenses under Section 80DD.

The coverage limit is determined based on the percentage of disability, wherein people having 40-80% disability are eligible for deduction up to ₹75,000.

Families hosting a person having disability higher than 80% can claim up to ₹1.25 Lakh inclusive of all related expenses. Such claims are granted only to the family of such dependent individuals.

13. Income Tax Benefits Extended Towards Disabled Individuals

Section - 80U

Limit:

₹75,000 for 40%-80% disability
₹1,25,000 for higher than 80% disability

Disabled individuals can claim compensation in the form of tax waivers under Section 80U. Such disability has to be certified by a registered medical authority with at least 40% impairment.

Incapacitated individuals suffering from 40-80% disability can claim ₹75,000, while people suffering from higher than 80% disability are entitled to maximum ₹1.25 Lakh through tax benefits.

14. Expenses Incurred Towards Treatment of Individuals With Specific Disease or Disability

Section - 80DDB

Limit - ₹40,000 (₹1,00,000 for senior citizens)

People financing the treatment of dependent family members diagnosed with certain specific diseases can claim tax waivers on subsequent income spent.

A maximum of ₹40,000 is disbursed in such cases for individuals below the age of 60. Such waiver consequently increases to ₹1 Lakh for senior citizens (60-80 years) and super senior citizens (above 80 years).

Such waivers can be received for the treatment of critical illness such as neurological diseases (causing 40% or higher disability), malignant cancers, AIDS, chronic renal disease, and haematological ailments.

Thus, there are several ways for tax saving other than Section 80C, which can effectively increase your total wealth in the long term. Most such tools act as a comprehensive investment tool as well; allowing realising higher returns or reduces obligatory expenses.

FAQs about Tax Saving Options other than 80C

✓ How can I claim such deductions?

File income tax returns online for the respective financial year to reduce total taxable income.

✓ When do I have to file income tax returns?

The last date for filing income tax returns changes every annual year and is published on their website. It usually ranges within months of July – August.

✓ What documents do I need to file such returns?

Keep the following documents handy while filing for income tax returns –

Form 16
Interest certificates from banks/post office
Form 26AS
Proof of investment in tax saving instruments
All related proof to make claims under the various sections
Capital gains
KYC documents
Salary slips

Tax Saving Options other than 80C

All about Tax Saving Investments other than 80C

What are the Various Tax Saving Investments Other than 80C?

1. Interest Income Generated from Savings Account Deposits

2. Interest Component Paid Towards Education Loan

3. Premium Payment Towards Health Insurance Policies

4. Interest Component Paid Towards Home Loans

5. Interest Component Paid Towards Home Loans for First Time Home-Buyers

6. Sum Assured on Maturity of Life Insurance Plans

7. House Rent Allowance Provided Under Salary Break-Up

8. House Rent Allowance Component Not Included Under Salary Break-Up

9. Donations to Charitable Organisations

10. Donations Made Towards Scientific Research and Rural Development

11. Donations Made Towards Political Parties

12. Expenses Incurred Towards Treatment of a Disabled Person

13. Income Tax Benefits Extended Towards Disabled Individuals

14. Expenses Incurred Towards Treatment of Individuals With Specific Disease or Disability

FAQs about Tax Saving Options other than 80C

✓ How can I claim such deductions?

✓ When do I have to file income tax returns?

✓ What documents do I need to file such returns?

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