Most of the people utilize their 80C limit so fast due to their home loan or insurance policies. They are unaware about other sections where they can plan and invest in advance to save their taxes above and beyond section 80 C.
As the 31st March deadline is approaching, taxpayers are in a rush to find more tax saving options. Some of them might have already exhausted their section 80C limits and are unaware of how to save more taxes beyond section 80C.
Most of the people utilize their 80C limit so fast due to their home loan or insurance policies. They are unaware about other sections where they can plan and invest in advance to save their taxes above and beyond section 80 C.
Health Insurance Premium (Section 80D):
In case you opt for the health insurance for yourself or for your family members including your spouse, children, and parents, you can save the taxes under section 80D
Interest on Home Loan (Section 24):
In case you have taken a home loan, you can claim deductions on the interest paid on the loan under Section 24. The maximum deduction on home loan interest allowed is Rs. 2 lakh for self-occupied properties. For Let-Out property there is no limit; the entire interest amount can be deducted.
Medical Expenses for Disabled Dependents (Section 80DD):
For the taxpayer who has disabled person dependent on them, under Section 80DD, they can claim deductions for expenses incurred for medical treatment, training, and rehabilitation of a disabled person. The maximum deduction allowed is Rs. 75,000 (40% and over disability) to Rs. 1.25 lakh(80% and over disability), depending on the severity of the disability.
Donations to Charitable Institutions (Section 80G):
Donations done to the authorized charitable trusts or specific relief funds as per the government which qualify for deductions under Section 80G can also be a good option to save taxes. There are some criterias which need to be checked, as the deduction amount depends on the eligibility for 100% or 50% deduction of the donated amount.
Interest on Education Loan (Section 80E):
If the taxpayer has taken an education loan for higher studies for themselves, spouse, children, or a student for whom they are a legal guardian, they can claim deductions on the interest paid under Section 80E.