Tax Saving Options Other Than Section 80C Of The Income Tax Act

Section 80C of the Income Tax Act helps to minimise the tax burden of Indian citizens. Taxpayers highly prefer this Section as it offers deductions against investments in multiple options such as PPF, ELSS funds, tax-saving fixed deposits, and NSC. However, one cannot avail deductions of more than Rs. 1.5 lakh through this provision in a financial year. 

As per Section 80CCD, you can opt for an additional deduction of Rs. 50,000 through NPS investments, marking a maximum limit of Rs. 2 lakh. If you wish to avail additional tax benefits, keep reading this article! 

Tax-Saving Options Other Than 80C  

The chart below will guide you through the multiple investment options other than 80C and their exemption limits.

Section	Deductions on	Deduction Limit
80D	Premiums of health insurance	From Rs. 25,000 to Rs. 1,00,000
80DD	Medical expenses incurred for handicapped dependent	For disability of 40% to below 80%: Rs. 75,000For disability of 80% or above: Rs. 1,25,000
80DDB	Health expenses incurred due to treatment of dependent relatives or self for diseases covered under Rule 11DD	For below 60 years: The actual amount paid or Rs. 40,000, whichever is lower For above 60 years: The actual amount paid or Rs. 1 lakh, whichever is lower)
80E	Student loan interest	Interest payable for 8 years
80EE	House loan interest payable for first-time house purchasers	Rs. 50,000
80G	Contribution to charity	No maximum limit
80GG	HRA (ifrrb your salary break-up doesn’t mention house rent allowance)	Lowest of:25% of your incomeRs. 5,000 each month10% of income subtracted from rent paid
80GGA	Contributions to rural development and scientific research	No maximum limit
80GGB	Contributions of a firm to a political party	No maximum limit (not applicable in case of cash payment)
80GGC	Contributions of an individual to a political party	Sum paid (not applicable in case of cash payment)
80TTA (1)	Savings account interest income	Up to Rs. 10,000
80U	Individuals suffering from a disability	Self-suffering from mental retardation or physical disability: Rs. 75,000Self-suffering from severe disability: Rs. 1,25,000
80RRB	Income in the form of  royalty payment	Least of actual income or Rs. 3 lakh
24(b)	Home loan interest repayment	Rs. 2 lakh
10(10d)	Sum assured of a life insurance policies	No maximum limit
10(13A)	HRA (if your salary break-up includes house rent allowance)	Lower of:HRA received Rent payable minus 10% of basic salary 50% of basic pay if you stay in metro cities or 40% of basic pay if you stay in non-metro cities

Now that you know about all the sections and the corresponding tax exemption limits, let’s discuss the different investment options available under each section

Also Read: Income Tax Deductions Under Section 80C To 80U

Major Tax-Saving Investment Options Other Than Section 80C 

Here are some of the best tax-saving options as per different sections other than section 80C:

1. Under Section 80D 

The following table elaborates on the deduction limit prescribed under 80D.

Eligibility	Deduction Limit
Medical insurance for self and dependent family members(spouse and children)	Rs. 25,000
For self and dependent family members + parents	Rs. 50,000 (Rs. 25,000 + Rs. 25,000)
For self and dependent family members (below the age of 60) + parents (above the age of 60)	Rs. 75,000 (Rs. 25,000 + Rs. 50,000)
For self and dependent family members (above the age of 60) + parents (senior citizens)	Rs. 1 lakh (Rs. 50,000 + Rs. 50,000)

This provision includes medical check-up costs as well. For this, tax waivers of up to Rs. 5,000 will be applicable. Such deductions are included within a limit of Rs. 25,000 or Rs. 50,000, depending upon the situation. 

2. Under Section 80DD 

HUFs (Hindu Undivided Families) and individuals who pay for the wellbeing and treatment of disabled family members can opt for tax waivers. Individuals with 40% to 80% disability can qualify for a deduction of Rs. 75,000 (maximum). In case of individuals with above 80% disability, deduction limit goes up to Rs.1,25,000 that includes all associated costs. 

3. Under  Section 80DDB

You can receive these tax benefits for treatments of critical diseases such as haematological ailments, chronic renal disease, AIDS, malignant cancers and neurological diseases (that cause disability of 40% or above). 

4. Under Section 80E  

The interest component of student loans (both secured or unsecured) is tax-free only for the first eight years of the repayment period. To be eligible, a person will have to use an education loan for higher studies of self, children, or spouse. He/she must apply for this loan in his/her name. 

5. Under Section 80EE

A first-time house buyer may opt for an additional interest deduction of Rs. 50,000 after claiming Section 24(b) benefits on house loan repayments, provided the value of the property is below Rs. 50 lakh and the loan amount must be within Rs. 35 lakh.   

6. Under Section 80G

Contributions towards charitable organisations are exempted from taxation. However, you must transfer such payouts through bank accounts only. Cash donations are allowed for exemptions only up to Rs. 2,000. Only registered charitable organisations should be entitled to such donations.  

7. Under Section 80GG  

If your employer doesn’t cover the house rent allowance under the salary break-up, tax exemptions will be applicable on the taxable income. 

8. Under Section 80GGA 

You can claim tax waivers for donating money towards rural development and scientific research. The entire amount paid will be tax-free, provided your bank details include such transactions. 

9. Under Section 80GGB

Any Indian company donating money to any registered political party or an electoral trust can claim tax exemptions. Cash payments are not eligible for this exemption.

10. Under Section 80GGC  

Contributions made to a political party are tax-exempted, provided the transactions are carried out through bank transfers. However, you can only donate to the political parties that have been registered through Section 29A of the Representation of People Act, 1951.

11. Under Section 80TTA

This section allows tax deduction on interest earned via savings bank accounts. The annual deduction limit is Rs. 10,000. In case of multiple savings accounts with different banks, the cumulative interest will be taxable under the head of earnings from other sources. If your annual interest income is above Rs. 10,000, the additional amount will be taxable as per income tax slabs.  

12. Under Section 80U 

Disabled people can avail compensation by way of tax deductions. A registered health authority must certify such disability with 40% (minimum) impairment. Individuals with above 80% disability can claim up to Rs. 1.25 lakh as tax benefits, while incapacitated people with 40% to 80% disability are entitled to a deduction of Rs. 75,000. 

13. Under Section 80RRB 

Any Indian citizen receiving income in the form of royalty can enjoy tax exemptions against the same. However, such citizens must hold a registered patent under the Patent Act, 1970.

14. Under Section 24(b)

As per this section, you can save taxes through your home loan interests. If you use such a house for residential purposes, then a deduction of up to Rs. 2 lakh will be applicable during a financial year. However, the house construction must be completed within 5 years of the repayment period. If you rent out the purchased property, then there will be no taxation on the home loan interest. 

15. Under Section 10(10D)   

The total payment after the maturity of a life insurance policy or upon the unfortunate death of a policyholder can be claimed for tax exemption. However, you can avail such benefits only if a policy is bought post April 1, 2012 and the premium amounts are below the sum assured. If you have purchased a policy prior to April 1 2012, then the premium amount must be below 20% of the sum assured. 

16. Under Section 10(13A) 

This section offers tax benefits for your HRA (House Rent Allowance), provided the salary break-up includes this component. 

Also Read: Mutual Funds And Section 80C: Here’s How Investments Can Save You Tax

Final Word 

Indian citizens must plan for tax efficiency in order to reduce their financial burden every year. While filing your income tax returns, you must find out and opt for the tax benefits available to you. 

This article has already mentioned the multiple tax-saving options other than Section 80C to help you increase your net income in the long run. So, don’t miss them out! 

Frequently Asked Questions 

1. How can I reduce my taxable income?

You can reduce your taxable income by way of specific investments and expenses that are eligible for tax deductions under various sections of the Income Tax Act. You can claim tax benefits under Section 80C, 80D, 80E, and multiple other sections. 

2. How can I claim such deductions?

After you furnish your income details in the tax returns (ITR-1), you need to provide the tax-saving deductions applicable through Sections 80C to 80U. You can claim such deductions from your total earnings prior to the imposition of income tax.   

3. When is the last date to file income tax returns for FY 2021?

For individual taxpayers, the last date to file ITR for the financial year 2020-21 was December 31 2021. For individuals whose accounts required auditing, the last date to file income tax returns was February 15 2022. 

4. What are the documents required while filing IT returns for the benefit of HRA?

For claiming HRA benefit, you need to provide documents such as rent agreement and rent receipts to your company (employer) prior to the end of the fiscal year. If the annual rent paid goes beyond Rs. 1 lakh, you’ll have to submit your landlord’s PAN. 

Next, you must attach a copy of your Form-16 (TDS certificate that your company has issued) with the income tax returns to avail the tax benefit. 

No, Section 80C and Section 80D are not the same. Section 80C offers a tax deduction for investments in various options such as NPS, ULIP, ELSS funds and PPF. Under this Section, the deduction limit is Rs. 1.5 lakh. 

On the other hand, Section 80D allows a deduction on the premium paid towards a health insurance policy. Here, the deduction limit starts at Rs. 25,000, but can go up to Rs. 1 lakh under certain conditions.

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