It’s tax season. The March 31st deadline is near. Time to submit your investment proofs and receipts and claim tax deductions and exemptions. It’s time for you to avail the Section 80C deduction…The very popular deduction which helps you save tax. You get a tax deduction up to INR 1.5 Lakhs a year on your taxable salary, if you put money in investments which enjoy Section 80C benefits.
The premiums you pay for life insurance plans, The EMI (Principal) you pay on your home loan, your investments in PPF, ELSS, NPS, Tax Saving FD, SCSS, Post office time deposits, NSC and some other investments enjoy a combined deduction of INR 1.5 Lakhs a year, under Section 80C of the income tax act.
But, enough of Section 80C….Let’s look beyond….Let’s talk of some other income tax deductions which can save you tax. Want to know more on tax planning? Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.
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Tax Benefits Beyond Section 80C
A health insurance plan for you and family is a must. Hospitalization can be very costly and blow away your savings. Fortunately, you have the health insurance plan to settle the hospital bills. You also enjoy tax benefits under Section 80D.
You get a tax deduction up to INR 25,000 a year, under Section 80D of the income tax act, on the premium paid for a health insurance plan, for self and family. If you are a senior citizen, you get a tax deduction of a maximum of INR 30,000 a year, on the premium you pay for your health insurance plan.
2.Section 80DD: Expenses for health of disabled person
You get this deduction for the expenses you incur on the health and maintenance of a disabled spouse, children, brother or sister who are dependent on you.You can claim a maximum deduction of INR 75,000 a year under Section 80DD. You get a deduction up to INR 1,25,000 a year, in case the dependent is suffering from a severe disability.
3.Section 80DDB: Expenses for treatment of a specific disease
You get this deduction for the expenses you incur on treatment of specified diseases for yourself/spouse/ dependent parents/children or siblings. The maximum deduction you can claim is INR 40,000 a year. If the person for whom you claim expenses is 60 years or more, then the maximum limit is INR 60,000 a year. The maximum deduction is INR 80,000 a year if the dependent person is over 80 years.
4.Section 80E: Paying interest on education loans
Have you taken an education loan from a bank or a financial institution on higher education for yourself, spouse or children? You can claim deduction for the interest you pay on the education loan in a financial year, up to any limits. This deduction is for a period of 8 years and starts from the year, interest payments begin.
5.Section 80U: Tax deduction if you are physical disabled
If you are salaried or self employed, you get a tax deduction under Section 80U, if you are suffering from a physical disability. If you suffer from physical disability of 40% or more, you can claim a maximum deduction of INR 75,000 a year. If you suffer from physical disability of 80% or more, you can claim a maximum deduction of INR 1,25,000 a year.
You can claim a tax deduction on donation to a political party. You get a maximum deduction under Section 80GGC of a 100%. Your entire donation is tax deductible, provided the payment is not made in cash.
7. Section 80TTA: Tax deduction for interest on savings bank accounts
You get a tax deduction on the interest earned from your savings bank account. You can claim a maximum of INR 10,000 a year, on the interest earned from your savings bank account.
Yes…There is tax saving beyond Section 80C. All you need to do is learn these tax deductions. Then use them to save your hard earned money. A rupee saved is a rupee earned. Good tax planning will soon lead you on the path to riches.
Be Wise, Get Rich.
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