There are several sections apart from 80C that can help an individual benefit from tax exemptions
Most of the taxpayers know only about the type of deductions and the limit of deduction under Section 80C
but there are few more deductions which taxpayer can claim to lower the amount of tax payable.
Listed below is a comprehensive picture of tax deductions and exemptions that you are entitled to in various financial products.
||Resident individual (Not for NRI)
||New investors who invests under equity scheme if gross total income does not exceed Rs. 12 lakh
||50% of amount invested in equity shares, restricted to Rs. 25,000
||Medical insurance premium paid for self, spouse or dependent children
||Maximum Rs.15,000 and Rs. 20,000 in case of senior citizen
||Resident individual / resident HUF
||For maintenance including treatment or insurance the lives of physical disable dependent relatives
||Rs 50,000 flat and Rs.1 lakh in case of severe disability
||Resident individual / resident HUF
||Medical treatment expenses for himself or dependent or a member of HUF (in case of HUF assessee)
||Actual expense or Rs. 40,000 (Rs. 60,000 in case of senior citizen)
||For interest payment on loan taken for Higher studies for self or education of spouse or children
||Entire amount of interest (not principal) is deductible for maximum of 8 years
||Donations to charitable institution
||100% or 50% of amount of donation made (subject to I-T Act, 1961 terms).
||Individual (who does not get HRA)
||For rent paid
||Least of the following:
1). Rs. 2000 per month
2). 25% of total income
3). Rent paid less 10% of total income
||All assessee other than Indian companies
||Contribution give to political parties
||Sum contributed to political parties
||Interest in savings account (Not time deposits or fixed deposits)
||Maximum is Rs. 10,000
||Only for taxpayer and not for any other i.e. spouse, children etc
||Rs. 50,000 which goes to Rs. 1 lakh in case taxpayer is suffering from severe disability
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.
The writer is the CEO of IndianTaxUpdates.com.
Investment covered u/s 80C Income Tax
Income tax exemptions & deductions under various sections
Avail tax deductions & exemptions on stock investments
Tax provisions for investment in mutual funds
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