One of the most popular tax-saving options is Section 80C. Section 80C provides investment options for people who want to reduce their tax liability. The list of tax-free instruments under this section is quite lengthy - life insurance premiums, PPF contributions, five-year term deposits, and ELSS schemes are just a few.

However, there is a catch.

The total exemption you can claim through Section 80C investments cannot exceed ₹1,50,000. By adding NPS investments (Section 80CCD), you can claim an additional ₹50,000, bringing your total deduction to ₹2 lakhs. Is the two-lakh exemption enough?

What if you can get more?

In addition to Section 80C, there are other tax-saving exemptions that you may qualify for. Some of these fall under Section 80, while others come under other sections.

Let us find out what they are.

List of Tax Saving Options under Section 80

Here is a complete list of tax-free deductions available under Section 80 apart from Section 80C:

Sections What They Deal In Exemption Limit

80CCD

Contributions to National Pension Schemes (NPS)

₹50,000

80D

Health insurance premiums

  • Up to ₹25,000 for oneself + family ( including spouse and child).
  • Up to ₹50,000 for oneself and family + parents
  • Up to ₹75,000 for Oneself and family (below 60 years) + Parents above 60 years of age
  • Up to ₹1,00,000 for Oneself and family (with members above 60 years) + Senior Citizen Parents

80DD

Expenses on a handicapped dependent

  • ₹75,000 for people with 40% to 80% disability
  • ₹1,25,000 for people with higher than 80% disability

80DDB

Treatment of specified illnesses

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

80E

Education loan interest payment

No limit

Home loan interest payment for first time home-owners

Up to ₹50,000

80G

Donations to approved charitable institutes

No Limit

80GG

Rent paid by employees not having HRA

Lower of the following –

  • ₹5000/month
  • The total annual income of 25%
  • 10% of the basic annual income.

80GGA

Donations for Scientific Research and Rural Development

No Limit

80GGB

Donations Made to Political Parties or an electoral trust. (Indian companies are eligible to claim benefits)

No Limit

80GGC

Contributions made to a political party

No Limit

80TTA and 80TTB

Saving account interest

80TTA – Up to ₹10, (individuals below 60 years)

80TTB – Up to ₹10,000 for senior citizen

80U

Handicapped tax-payers can claim this deduction

₹75,000 for 40% to 80% disability

₹1,25,000 for higher than 80% disability

80RRB

Royalty or patent income

Up to ₹3 lakhs

Section 80CCD

Deduction For - Contributions to National Pension Schemes (NPS)

Deduction Limit - ₹ 50,000

As per the Central Government's notification, tax deductions can be claimed for contributions to National Pension Schemes under 80CCD.

Contributions made by an employee, employer or voluntary self-contribution are eligible for deduction. Section 80C allows an overall deduction of ₹1,50,000 lakh plus an additional deduction of ₹50,000 for self-contributions to NPS or Atal Pension Yojana under Section 80CCD(1b).

Section 80D

Deduction For: Premiums Paid Towards Health Insurance Policies

Deduction Limit: Subject to Specific Conditions

Requirements Exemption Limit

Health insurance coverage for:

Oneself and one's family (spouse and dependent children)

₹25,000

Oneself and one’s family + Parents

₹25,000 + ₹25,000 = ₹50,000

Oneself and one’s family (below 60 years) + Parents above 60 years of age

₹25,000 + ₹50,000 = ₹75,000

Oneself and one’s family (with members above 60 years) + Senior Citizen Parents

₹50,000 + ₹50,000 = ₹1,00,00

Health check-up expenses are also eligible for a tax rebate of ₹5,000 under Section 80D.

The health check-up exemption is inclusive of the ₹25,000 rebate on health insurance. In other words, people who have claimed ₹5,000 for medical check-up costs may be eligible for a rebate of ₹20,000 on their premium charges.

Suggested Read: What all can be claimed under section 80D?

Section 80DD

Deduction For - Medical or rehabilitation expenses paid for a handicapped dependent.

Deduction Limit:

  • ₹75,000 for people with 40% to 80% disability
  • ₹1,25,000 for people with higher than 80% disability

It is related to the tax deduction available in the following cases:

HUFs and individuals paying for a disabled family member's treatment and wellbeing are eligible to claim exemptions under Section 80DD on the total income spent.

The coverage limit is determined by the percentage of disability, with people with 40-80% disability eligible for a deduction of ₹75,000.

Whereas, families that are caring for an individual with a disability of more than 80% can receive ₹1.25 lakh for all their related expenses. This benefit is only available to the dependent individual's family.

Suggested Read: Know Tax Deduction on Medical Expenses of Disabled Dependent under Section 80DD

Section 80DDB

Deduction For - Medical expenses paid for oneself or dependents in treating a specific illness or disability

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

When you pay for the treatment of a family member diagnosed with one or more specific diseases, you may be eligible for a tax waiver.

Individuals under the age of 60 are eligible to receive a maximum of ₹40,000. Accordingly, such waivers are increased to ₹1 Lakh for senior citizens (60-80 years old) and super seniors (over 80 years old).

A waiver may be given for the treatment of critical illnesses such as malignant cancers, chronic renal disease, AIDS, haematological ailments, and neurological diseases (causing 40% or more disability).

Suggested Reads:

Section 80E

Deduction For - Interest Paid Towards Education Loan

Deduction Limit - No Limit

In the financial year, the interest part of the EMI is deducted. There is no maximum amount that can be deducted.

A bank certificate, however, is required. This certificate should separate the principal and interest portions of the education loan you paid during the financial year.

A deduction will be allowed for the total interest paid. No deductions will be allowed for the principal repayment.

According to the amount of funds required, an education loan can either be unsecured or secured.

It is important to note, however, that such waivers are limited to the first eight years of loan repayment. After eight years, interest paid will be taxable.

Section 80EE

Deduction For - Home Loan Interest for First-time Buyers

Deduction Limit - ₹50,000 | plus benefits from Section 24(b)

If the property value is less than ₹45 Lakh, first-time home-buyers can claim additional interest benefits up to ₹50,000 over Section 24(b) on home loan EMIs. This effectively allows up to ₹2.5 Lakh to be saved in taxes in addition to the Section 80C deduction.

For a tax rebate on EMI payments under Section 80EE, an applicant must not have owned any other property before applying for a home loan.

Section 80G

Deduction For - Donations Made to Charitable Organisations

Deduction Limit - No Limit

Entire contribution to a charitable organisation is exempt from taxes under Section 80G. If the transfers have been made through banks, there is no limit to these tax waivers.

Cash donations are exempt from tax calculations for up to ₹2,000 per year. Such contributions must, however, be made to registered charitable organisations.

Suggested Read: Claim Income Tax Deduction for Donation under Section 80G

Section 80GG

Deduction For - House Rent Allowance (HRA), if NOT Included in the Salary Breakdown

Deduction Limit - Specified Conditions

Section 80GG allows you to claim exemptions on your total taxable income if your company does not include the HRA component in your salary breakdown. In the case of tax-saving investments other than 80C, tax waivers are granted to the least of the following:

  • Monthly ₹5,000
  • The total annual income of 25%
  • 10% of the basic annual income.

Suggested Read: Don’t Receive HRA? Section 80GG Can Help You Save Tax

Section 80GGA

Deduction For - Donations for Scientific Research and Rural Development

Deduction Limit - No Limit

Tax exemptions can be claimed under Section 80GGA for donations for scientific research and rural development.

Such deductions can be made on 100% of the income spent, as long as it was made through a bank account and documented.

Section 80 GGB

Deduction For - Donations Made to Political Parties or an Electoral Trust

Deduction Limit - No Limit

According to Section 80GGB of the Income Tax Act 1961, any Indian company that contributes any amount to a political party or electoral trust registered in India can deduct that amount from its income tax liability.

Section 80 GGC

Deduction For - Donations Made to Political Parties or an Electoral Trust

Deduction Limit - subject to donation should not be made in cash or kind

Note: The 80GGC can be claimed by any individual except by local governments or artificial juridical persons that receive government funding in whole or in part.

Individuals, Hindu Undivided Families (HUF), firms, AOPs, BOIs, and Artificial Juridical Persons are eligible for making contributions under Section 80GGC. However, the government should not fund the Artificial Juridical Persons.

Suggested Read: Political Party Donations: Understanding Sections 80GGB And 80GGC

Section 80TTA

Deduction For - Interest Earned on Savings Account Deposits

Deduction Limit - ₹10,000

A maximum of ten thousand rupees can be deducted from the net total interest earned from the savings accounts with the bank and/or post office. FDs, RDs, and corporate bonds are not included in interest income.

Multiple savings accounts in different banks are treated as a single account, so that their cumulative interest is taxed under 'income from other sources'.

For interest income that exceeds ₹10,000 in one year, only the excess amount over the cap is taxed at rates determined by the aggregate annual income.

Suggested Read: Section 80TTA Can Help You Save Tax on Savings Account Interest Income

Section 80U

Deduction For - Individuals with Disabilities Receive Income Tax Benefits

Deduction Limit:

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

Section 80U allows disabled individuals to claim tax waivers if they are certified by a registered medical authority to be 40% disabled.

People with disabilities whose disabilities are between 40% to 80% can claim ₹75,000, while those with disabilities more than 80% can claim ₹1.25 lakhs in tax benefits.

Suggested Read: Who can claim deduction under Section 80U and how much?

Section 24(b)

Deduction For- Income from house property

Deduction Limit - ₹2 lakhs

You can earn tax exemptions on your home loan interest payments as well. Under Section 24(b), interest of up to ₹2 lakhs is tax-free, provided that the construction is completed within five years of the loan term.

Suggested Read: Do You Have a Housing Loan? You Can Use Section 24 to Secure an Income Tax Deduction

Section 10(13A)

Deduction For - House Rent Allowance Provided Under Salary Break-Up

Deduction Limit - Specified Conditions

Salary-earning employees may be entitled to receive House Rent Allowance as part of their pay. You can claim a HRA exemption if you are renting a home. You can claim an exemption up to the lower of the following:

  • Amount of HRA actually received
  • 50% of your salary if you live in a metro city or 40% if you are in a non-metro city
  • Rent paid – 10% of annual salary

Suggested Read: What is House Rent Allowance and how is it calculated?

Other Exemptions from Salary Income

In addition to the HRA exemption, you can also take advantage of tax exemptions on Leave Travel Allowance, meal coupons, conveyance allowance, medical allowance, etc.

Suggested Reads:

Section 10(10D)

Deduction For - Sum Assured Upon Maturity of Life Insurance Policy

Deduction Limit - Entire sum assured on maturity/ maturity amount

Under Section 10(10D), the entire amount paid by the life insurance company upon maturity of the life insurance policy either on untimely death of an insured or end of the policy term can be claimed as a tax rebate.

However, such death benefits are exempt from tax calculations if they are taken after April 1, 2012, and the total premiums are less than the full sum assured.

To be eligible for waivers under section 10(10D), the premium expenses should not exceed 20% of the total sum assured if the policy was taken out prior to 1st April 2012.

Gifts, Wills, and Taxation

Money received by way of gift is also tax-free. If you receive gifts from your direct relatives, there is no upper limit on exemption. From non-relatives, however, gifts up to ₹50,000 are tax-free. If you receive cash gifts on the event of marriage, they are completely tax-free without any limit and irrespective of the person giving the gift. Money received through will is also tax-free in your hands.

Do not depend entirely on Section 80C to reduce your tax liability. Though Section 80C does offer a major tax-saving deduction, there are other sections that one can explore. So, use the above-mentioned sections of the Income Tax Act and save your tax outgo.

Suggested Reads:

Conclusion:

Other than Section 80C, there are several ways for you to save money, which will increase your total wealth over time. Most of these tools also serve as investment tools, reducing expenses and enabling higher returns. To know more, feel free to connect with our trusted financial advisors today!

Disclaimer:

This article provides generic information and is intended solely for informational purposes. If you have a particular issue, we recommend that you seek specific professional advice before taking any action. Tax laws are subject to change. You should consult a tax advisor for an exact estimate of your tax liability.