You must be well familiar with Section 80C deductions. Yes, they are the most popular tax deduction around. You get a tax deduction up to Rs 1.5 Lakhs a year under Section 80C. But, Section 80C is not the beginning and end of all tax deductions. There are tax saving options other than Section 80C.
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Availing a health insurance plan has become very important, because of the high cost of hospitalization and medical treatment. If you do not have a health insurance plan, your medical bills will eat up all your savings as out of pocket expenses.
A Health insurance plan doesn't just settle your hospitalization bills. It also helps you save tax. The premiums paid on health insurance plans are eligible for a deduction under Section 80D of the Income Tax act.
You get a deduction up to Rs 25,000 a year on the health insurance premiums paid for yourself, spouse or dependent children. You can also get an additional deduction of Rs 25,000 on the premiums paid for your parents. If your parents are senior citizens, then you can avail a deduction up to Rs 30,000 a year.
You can claim a tax deduction under Section 80DD on expenditure incurred for the medical treatment of a dependent physically disabled person. The maximum deduction that can be claimed under this Section is Rs 75,000 a year.
In case of severe disability, the amount will be increased to Rs 1,25,000 a year. To claim this deduction, you need to submit the certificate issued by the medical authority/hospital while filing your income tax returns.
You can claim a deduction under Section 80DDB on the expenditure incurred on the treatment of specified diseases for self or spouse and dependent children, parents or siblings. The deduction that can be claimed is equal to the actual amount paid or Rs 40,000, whichever is less.
If a person is a senior citizen, Rs 40,000 will be increased to Rs 60,000. Some of the specified diseases include neurological diseases, AIDS, malignant cancers and haematological disorders.
SEE ALSO: How To Pay Zero Tax?
You can claim a deduction under Section 80E on interest paid on education loan taken for pursuing higher education of self or a dependent. The loan should be taken for higher education which is an educational course after second PUC.
Under Section 80E, there is no maximum limit of interest deduction on the education loan. You can claim this deduction for 8 years, starting from the year in which the interest payment starts.
You can avail a tax deduction under Section 24 on EMI (interest) on home loans, for a self-occupied property, up to a maximum amount of Rs 2 Lakhs a year. If you are a first time home buyer, you get an additional deduction of Rs 50,000 a year on home loan interest under Section 80EE.
You can avail a deduction under Section 80G, If you have donated your money for the renovation of temples, mosques, churches and to any other fund notified by the Central government. The deducted amount should not exceed 10% of the adjusted gross total income. You are eligible for deductions ranging from 50-100%, depending on the donation under Section 80G of the income tax act for FY 2017-18. Be Wise, Get Rich.
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