Tax saving options other than those available as per section 80C of income tax act

Tax Saving

Tax saving options available as per section 80C of income tax act.

Does it feel good to pay a large amount of tax? The answer is a big NO. Tax is something that revolves around our life. As per Entry 82 of the Union List of Schedule VII of the Constitution of India , taxation in India is levied by Central government to every individual (other than agriculture) as per income tax slab.

Most of us are aware of the tax saving options under section 80C of income tax act. You can be investing deduction up to Rs. 1, 50,000 from your total income. It has various investment options like PPF, NSC, LIC, 5 years FD etc. Tax saving plans under 80C includes section 80CCC, 80CCD, 80CCF and 80CCG.

There are several tax saving options other than section 80C to help a person from tax exemption. Following are some of the schemes as per latest Tax structure in India 2015-2016 –

80D: Section 80D includes Individual and Hindu Undivided families (HUF).This includes medical insurance premium. It can be paid for self, dependent children and spouse. Deduction amount is up to Rs 25,000. Income tax Relaxation for senior citizens (60yrs -80yrs) amount varies from Rs 20,000 to Rs 30,000. Super senior citizens have exemptions up to Rs 30,000.

80 DD: For resident individual and HUF. It includes medical treatment expenditure, rehabilitation, and training of disabled dependent. He shouldn’t claim any deductions under 80U.

It also includes LIC and other insurance schemes paid for the dependent. Fixed Concession of Rs 75,000 can be claimed for disability range of 40%-80%.In case of severe disability (>80%) deduction can be claimed up to Rs. 1, 25,000.

80DDB: Eligibility involves HUF and individual. It includes deduction for the medical treatment of family and self towards treatment of disease under rule 11DD.

Deductions can be claimed up to Rs 40,000 to Rs 60,000(for senior citizens) and Rs 80,000(income tax exemption for super senior citizens)

80E: Applies to interest payment on loan taken for higher studies for self or education of spouse or children. The concession is equivalent to the entire amount of interest for max 8 years.

80EE: Section 80EE is levied on individual taxpayers for the interest repayment of a loan taken by them to buy a residential property .The maximum tax deductions permitted is Rs 30000.

80G: In cases of donations to charitable institutes. Tax exemption for donation amount varies from 50% to 100% of the donated amount (As per Income Tax act).

80GG: For taxpayers who doesn’t get HRA. Individual tax exemption is up to Rs 60,000 per annum.

80U: Applicable to person suffering from mental retardation or physical disability. Disability is decided as per rule 11DD.A fixed tax deduction up to Rs 75,000 and Rs 1, 50,000(in case of severe disability).

As a conclusion, we should look beyond section 80C also for tax Relaxation. The better we plan, the better we save. Be aware of all the investment plans for your tax, after all it’s your hard earned money. Some other worth investing sections are  80I A, 80J, 80LA,80P, 80RRB and 80QQB.To know more about tax saving schemes, feel free to Contact us.