This is the time when people start calculating the tax liabilities. Hence, there are several sections apart from 80C that can help an individual benefit from tax exemptions. It is time to start looking beyond 80C for tax savings.
We bring to you the other options for tax benefit other than the famous Section 80C
80D: Section 80D qualifies for medi-claim policies. The maximum amount allowed for exemption annually for self, spouse and dependent parents/children is Rs. 15,000. In case of a senior citizen, the maximum amount extends up to Rs. 20,000. If you are paying the premium for your parents (whether dependent or not), you can claim an additional maximum deduction of Rs. 15,000.
80DD: A premium paid to LIC or any other insurance company (approved by the Income Tax board) for the medical treatment of a dependent physically disabled person, will help avail exemption under the section 80DD. Here, the dependent should be none other than your spouse, children, parents or sibling. Rs. 50,000 can be claimed in a year if the person is suffering from 40 per cent of any disability, if the disability is 80 per cent, the fixed sum goes up to Rs. 1, 00,000 per year. Medical certificate issued by a medical authority along with the return of income is required.
80DDB: Submit a medical certificate from a doctor working in a government hospital who attended you or your dependents and thus you can claim a deduction of up to Rs. 40,000 or the actual amount paid, whichever is less.
80E: The interest paid on loan taken for pursuing higher education of self or any dependent is exempted from tax under section 80E. An education loan can be taken for whom you are the legal guardian. This deduction is applicable for a period of eight years or till the interest is paid, whichever is earlier. Only Full time course s taken into consideration.
80G: Funds in which the donations are eligible for tax exemptions include the National Defence Fund, Prime Minister Drought Relief Fund, National Foundation for Communal Harmony, National Children’s Fund, Prime Minister’s National Relief Fund, etc.
80GG: If a salaried or self-employed person staying in a rented house does not receive any kind of HRA, they can claim a deduction under this section. However, you cannot avail any such benefit if you, your spouse and/or your child owns any residential accommodation in India or abroad. You can claim the least of the following under Section 80GG: 25 per cent of the total income, or Rs. 2000 per month, or excess of rent paid over 10 per cent of total income.
80GGC: Any monetary contribution to any political party or electoral trust is eligible for tax exemption. Thus, your contribution, as a matter of appreciation for their work, will serve both the purposes.
80CCG: The Finance Act 2012 introduced a new Section 80CCG to offer 50 per cent tax break to new investors who invest up to Rs. 50,000 and whose GTI is less than or equal to Rs. 10 lakh. It has been introduced for budding investors entering the equity markets for the first time and is a once-in-a-lifetime benefit.
Source – BankBazaar.com