Save Taxes with Other Investments Except 80C

As the famous saying goes, Save Money Today, and the Money Will Save You Tomorrow.Therefore, it is important to save your preciousmoney wherever and whenever you can, and Tax planning is one of the best ways to do so. One famous tax saving section offered under the Income Tax Act, 1961 is Section 80C which offers exemption up to Rs. 1,50,000 in one financial year. 

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However, tax-saving investment options other than 80C can also help the taxpayers further reduce the tax payable amount. Therefore, let us discuss some of the tax-saving avenues other than Section 80C and save a little more for the future.

Tax Saving Options Other Than 80C

Sections Genre Exemption Limit
80CCD National Pension Schemes (NPS) contribution Rs. 50,000
80D Health insurance premiums Exemption Up to Rs. 25,000 for self + family (includes child and spouse)
Exemption up to Rs. 50,000 for self + family + parents
Exemption up to Rs. 75,000 for self + family (60 years or less) + Parents (above 60 years)
Exemption up to Rs. 1,00,000 for self + family (above 60 years) + Senior Citizen Parents
80DD Handicapped dependent Rs. 75,000 for individuals with 40% to 80% disability
Rs. 1,25,000 for individuals with disability higher than 80%
80DDB Specific Illness Treatment Rs. 40,000 for individuals other than senior citizens
Rs. 1,00,000 for senior citizens
80E Loan interest on education No limit
80EE Loan interest on home for first-time buyers Up to Rs. 50,000
80G Charitable institutions donation No Limit
80GG Rent paid by employees (without HRA) Rs. 5,000 per month, or
25% of annual income, or
10% of the basic annual income, whichever is lower.
80GGA Scientific Research Donation
Rural Development Donation
No Limit
80GGB Donations made to Electoral Trusts or Political Parties No Limit
80GGC Contributions in favor of political party No Limit
80TTA Saving account interest Up to Rs. 10 for individuals below 60 years
80TTB Saving account interest Up to Rs. 10,000 for senior citizen
80U For disabled tax payers Rs. 75,000 for individuals with 40% to 80% disability
Rs. 1,25,000 for individuals with disability higher than 80%
80RRB Patent or Royalty income Up to Rs. 3,00,000

Let us understand the Sections mentioned above in detail:

  1. Section 80CCD

    Section 80CCD has the following highlights:

    • Used for National Pension Scheme (NPS) Contributions

    • The deduction limit has a capping of Rs. 50,000

    • Contributions made by employees are eligible for deduction of taxes that can be claimed under this Section.

    • Section 80CCD exemption of Rs. 50,000 is in addition to Section 80C exemption limit of Rs. 1,50,000.

    • Exemption limit of Rs. 50,000 is applicable under Section 80CCD (1b) as well for Atal Pension Yojana Scheme. 

  2. Section 80D

    Used for the payment of premiums toward Health Insurance Policies

    Following is the exemption limit depending upon the individual:

    Health insurance premiums Exemption up to Rs. 25,000 for self + family (includes child and spouse)
    Exemption up to Rs. 50,000 for self + family + parents
    Exemption up to Rs. 75,000 for self + family (60 years or less) + Parents (above 60 years)
    Exemption up to Rs. 1,00,000 for self + family (above 60 years) + Senior Citizen Parents

    Along with the above-mentioned exemption scenarios, general health check-ups are also eligible for tax rebates under Section 80D up to Rs. 5,000.

  3. Section 80DD

    • Section 80DD is applicable for any medical expenses paid by an individual for their handicapped dependent.

    • The exemption can be claimed on the total income spent.

    • The percentage of disability defines the coverage to be received by the individual contributor.

    • The exemption can be claimed only by the disabled individual’s family.

    • Rs. 75,000 is the exemption limit for individuals with 40% to 80% disability.

    • Rs. 1,25,000 is the exemption limit for individuals with disability higher than 80%.

  4. Section 80DDB

    • Section 80DDB is applicable for any individual or their dependent suffering from any specific illness.

    • Rs. 40,000 is the exemption limit for individuals other than senior citizens.

    • Rs. 1,00,000 is the exemption limit for senior citizens and super senior citizens.

    • A waiver may also be given for critical diseases causing disability of 40% or more such as AIDS, cancer, and more.

  5. Section 80E

    • This section is applicable for Loan interest on education.

    • There is no exemption limit under this section.

    • Interest paid on the EMI amount is deducted every financial year, which does not have any maximum limit.

    • A bank certificate is mandatory to avail exemption under Section 80E.

    • Deductions are applicable only on the total interest paid and not on the principal repayment.

    • A waiver under Section 80E is allowed only in the first eight years of the loan repayment and taxable thereafter.

  6. Section 80EE

    • Applicable on Loan interest on home for first-time buyers.

    • Along with benefits under Section 24(b), additional Rs. 50,000 are exempted under Section 80EE.

    • If the evaluation of the property is less than Rs. 45 lakhs, then:

    • Section 80C exemption is applicable + Rs. 50,000 exemptions are applicable under Section 80EE + benefits under Section 24(b) are applicable on home loan EMIs, which approximately accumulate around Rs. 2,50,000 to be saved.

    • Only applicable for a first time property buyer.

  7. Section 80G

    • Applicable on donations provided to charitable institutions

    • The entire amount is exempted from tax for the contribution made towards charitable institutions under Section 80G.

    • Cash donations up to Rs. 2,000 every year can be exempted from tax calculations.

    • The charitable organization shall be registered to claim exemptions.

  8. Section 80GG

    • Section 80GG is applicable only to employees who pay rent, and their HRA (House Rent Allowance) is not included in their salary.

    • Under this investment option other than 80C, the individual can claim exemption from the following options:

      • Rs. 5,000 per month, or

      • 25% of annual income, or

      • 10% of the basic annual income, whichever is lower.

  9. Section 80U

    • Any individual suffering from any disability is liable for tax exemption under this section.

    • Rs. 75,000 is exempted for individuals with 40% to 80% disability

    • Rs. 1,25,000 is exempted for individuals with disability higher than 80%

    • Exemptions can be claimed if a registered medical authority certifies an individual to be 40% disabled.

Investment Options Under Section 80C

As we have already discussed investment options other than 80C that helps in saving taxable amount, here is a list of income tax saving schemes under Section 80C that are available for every individual or HUF (Hindu Undivided Family) in India.

Investment Returns Lock-in Period
5-Year Bank Fixed Deposit 6% to 7% 5 years
ELSS Funds 15% to 18% 3 years
National Pension System (NPS) 12% to 14% Up till retirement
National Savings Certificate 7% to 8% 5 years
Public Provident Fund (PPF) 7% to 8% 15 years
Senior Citizen Saving Scheme (SCSS) 7.40% 5 years
Sukanya Samriddhi Yojana (SSY) 7.60% No lock-in period
Unit Linked Insurance Plan (ULIP) It depends upon the plan selected 5 years

In the end!

There are many investment options other than 80C wherein an individual can claim tax exemptions. Therefore, it is important to understand the Income Tax Law and exemptions available under our constitutions to save better and smart.

Tax Saving Investment
Save Tax Under Section 80C

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