14 Best Tax Saving Options Other than Section 80C 2024:

Section 80 includes several subsections, such as Section 80C, Section 80D, Section 80G, and so on, each of which provides specific deductions for certain sorts of expenses or investments. Alternative tax-saving possibilities include the National Pension Scheme (NPS), health insurance premiums (Section 80D), house loan interest (Section 24), rent (Section 80GG), and medical treatment expenses (Section 80DDB).

Here we are giving you a14 best tax saving options other than section 80c 2024 and you will be able to understand what you can achieve.

When it comes to tax planning, most people are familiar with Section 80C of the Income Tax Act, which provides favorable deductions for investments such as life insurance premiums, provident fund payments, and others. While this part is clearly useful, many taxpayers may be unaware of the several additional tax-saving opportunities accessible to them.

In this blog, we will delve into 14 tax-saving alternatives beyond Section 80C that can help you maximize your savings while reducing your tax liability.

14 Best Tax Saving Options Other than Section 80C 2024

1. Section 80CCD: Tax deduction for contributions to National Pension Schemes (NPS).

Deduction For contributions to National Pension Schemes (NPS)
Deduction Limit: ₹50,000.

Individuals who contribute to National Pension Schemes (NPS) can claim tax deductions under Section 80CCD of the Income Tax Act. This rule covers employees, employers, and voluntary self-contributions.

Section 80CCD(1b) allows taxpayers to deduct up to ₹50,000 for self-contributions to NPS or Atal Pension Yojana. This is above the ₹1,50,000 deduction limit under Section 80C.

Individuals that contribute to the NPS can reduce their taxable income while also encouraging retirement savings.

2. Section 80D: Tax Deductions for Health Insurance Premiums and Medical Expenses

Deduction For health insurance premiums and medical bills.

Deduction Limit: varies depends on the age and kind of taxpayer.
Section 80D of the Income Tax Act permits individuals to deduct health insurance premiums and medical expenses. The deduction limits vary depending on the age and kind of taxpayer.

Best Tax Saving Options Other than Section 80C,Section 80D of the Income Tax Act allows individuals to claim tax deductions for health insurance premiums and medical expenses. The deduction limits vary based on the age and type of taxpayer:

3. Section 80DD: Deduction for Medical Treatment and Rehabilitation of Disabled Dependents

Deduction for: expenses for medical treatment and rehabilitation of disabled dependents.

Deduction Limit: varies according on the severity of disability.

Best Tax Saving Options Other than Section 80C, Section 80DD of the Income Tax Act permits individuals to claim tax deductions for expenses related to the medical treatment and rehabilitation of disabled dependents. The deduction limits vary depending on the level of disability.

Note: The deduction is available for expenses incurred on the medical treatment, training, and rehabilitation of disabled dependents. The maximum deduction amount is based on the severity of the disability

4.Section 80DDB: Tax Deduction for Medical Expenses for Specific Diseases

Deduction for: Medical expenses for specific disorders.

Deduction limit varies depending on age and actual expenses incurred.

Section 80DDB of the Income Tax Act permits persons to seek tax breaks for medical expenses incurred for specific disorders for themselves or their family. The deduction limits vary depending on the taxpayer’s age and the actual expenses incurred.

5.Section 80E provides a tax deduction for student loan interest.
Deduction Limit: There is no specific limit

Deduction For: Interest on education loan

Deduction Limit: There is no specific limit

Best Tax Saving Options Other than Section 80C ,Section 80E of the Income Tax Act permits persons to deduct the interest paid on college loans. The deduction applies to loans obtained for higher education by the taxpayer, their spouse, children, or a student for whom the taxpayer is a legal guardian.

The main points to understand in this part are as follows:

• Individuals who have taken loans from authorized financial institutions or designated charitable institutions for higher education courses in India or abroad are eligible to claim the deduction.
• Duration: The deduction can be claimed for a maximum of eight years, beginning with the year of loan repayment.
• Usage: The deduction can be claimed by the person repaying the loan, and it should be included in the ‘Income from Other Sources’ section of the income tax return.
• No double deduction: It cannot be combined with another deduction for the same interest payment under any other provision of the Income Tax Act.

6.Section 80EE provides a deduction of ₹50,000 for new home loan interest

Deduction Limit – ₹50,000 | Complementary benefits with Section 24(b)

Best Tax Saving Options Other than Section 80C:

Section 80EE of the Income Tax Act of India provides tax benefits to first-time homeowners. It allows for an additional deduction of up to Rs. 50,000 on housing loan interest payments. This deduction is in addition to the Rs. 2 lakh deduction allowed under Section 24(b) for mortgage interest. To be eligible, the loan must be approved between April 1, 2016 and March 31, 2017, and the property value cannot exceed Rs. 50 lakh.

The deduction can be carried forward for up to 8 years if not fully claimed. The property must be self-occupied and the taxpayer should not own any other residential property.

7.Section 80G: Deduction for Donations to Charitable Organizations

Best Tax Saving Options Other than Section 80C:

Deduction for donations made to charitable organizations.
There is no deduction limit.

Deduction Limit: No Limit

Section 80G of the Income Tax Act permits taxpayers to deduct gifts made to recognized charity organizations. This provision applies to both persons and organizations.

The deduction amount for digital donations, such as bank transfers, is not limited under Section 80G. This means that taxpayers can claim that their whole payment to a charity organization is tax-free.

However, there is a cash donation limit. Cash contributions up to ₹2,000 per year are exempt from tax computations. It is crucial to clarify that this exemption applies solely to donations made to registered charity organizations.

8. Section 80GG: Deduction for Rent Paid

Deduction Limit: The deduction limit under Section 80GG is the least of the following amounts:

• Rent paid minus 10% of the total income.
• ₹5,000 per month.
• 25% of the total income.

Under Section 80GG, individuals can claim a deduction for the rent paid for their residential accommodation. This deduction is applicable if the individual does not receive HRA from their employer and does not own a residential property in the location where they reside or work.

9.Section 80GGA: Donations for scientific research or rural development.

Deduction Limit:The deduction limit for Section 80GGA is either the whole amount donated or ₹10,000, whichever is lower.

Deduction for Donations:Section 80GGA allows individuals and organizations to deduct donations made to entities involved in scientific research or rural development. The donation must go to an approved institution or group.

To claim the deduction, the donation must be made to an entity certified by the relevant body for scientific research or rural development purposes.

10.Section 80GGB: Indian firms’ donations to political parties or electoral trusts.

Deduction Limit: No limit

Section 80GGB allows Indian firms to deduct donations to political parties or electoral trusts. This provision attempts to encourage participation in political activities and election processes.

11.Section 80GGC: Contributions by individuals to political parties

Deduction Limit: Section 80GGC allows you to deduct the whole amount you contribute to a registered political party or electoral trust.

Individuals who contribute to registered political parties or electoral trusts can deduct their contributions under Section 80GGC. This clause is intended to encourage individuals to participate in the political process and support political parties.

12. Section 80TTA: Deduction on the interest earned on savings accounts

Deduction Limit: ₹10,000 

Under Section 80TTA, individuals and HUFs can claim a deduction of up to ₹10,000 on the interest earned from savings bank accounts. This deduction is applicable for interest earned from all types of savings accounts, including those held with banks, cooperative societies, and post offices.

13.Section 80U: Deduction for people with disabilities

Deduction Amount: The deduction amount under Section 80U is determined by the extent of the handicap. Deduction limitations are as follows:

Individuals with disabilities are eligible for a deduction under Section 80U of India’s Income Tax Act. This clause allows people with specific disabilities to deduct their whole income.

Difference between Sections 80DD and 80U

Section 80DD: Under this section, individuals can claim a deduction for expenses incurred for the maintenance, medical treatment, or rehabilitation of a disabled dependent.

clause 80U: This clause allows individuals to deduct their own disabilities, whether physical or mental.

14.Section 24(b): Interest deduction on a house loan

Section 24(b) of the Income Tax Act permits persons to deduct the interest paid on a house loan from their taxable income. This deduction applies to loans obtained for the purchase, construction, repair, or reconstruction of a residence.

The deduction is calculated on an accrual basis, which means it can be claimed even if the interest was not fully paid within the fiscal year.
For self-occupied properties, the maximum deduction limit is ₹2 lakh (₹1.5 lakh in 2020-21).
If the property is neither self-occupied or rented out, the deduction has no limit and can be claimed for the total amount of interest paid.

Disclaimer: Nothing on this site is intended to provide investment advice, performance data, or a recommendation that any security, portfolio of securities, investment product, transaction, or investment strategy is appropriate for any particular person. Please do not use this blog to make financial decisions. We strongly advise you to obtain professional counsel from someone who is qualified to provide investment advice.

if you want to save tax other than 80C , Exploring tax-saving measures other than Section 80C can help you lower your tax liability. The 14 options described in this article offer useful alternatives for increasing deductions and lowering your overall tax liability. Before investing or claiming deductions, consult a tax professional or financial counselor to ensure you understand your eligibility, limits, and documentation requirements. Taking informed action will help you make the most of these chances and save money on taxes.

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