Hopefully, you are claiming deduction upto Rs 1 Lakh under Section 80C by investing in various eligible options. If not, please read the article here about 80C tax deductions.
After exhausting the limit of Rs 1 Lakh u/s 80C, you must be thinking – Are there more avenues to save tax?
So, here are some options which are allowed as deduction from your income for purpose of tax calculation (other than 80C):
Section 80C – Deductions for eligible investments (upto Rs 1 lakh)
Under this section, you can claim deduction upto Rs 1 lakh if you make eligible investments. Read my article on 80C deduction.
Section 80D – Deduction for health insurance premium (upto Rs 20000)
You can claim deduction upto Rs 15000 – for any medical insurance premium paid for yourself, spouse, dependent children, parents. If any of parents is senior citizen, then deduction upto Rs 20000 is allowed.
To claim this deduction, you need to pay by mode other than Cash – i.e. by cheque, credit card, debit card etc. If you pay in cash, you cannot claim this deduction.
Section 80DD – Deduction for maintenance including medical treatment of a dependant who is a person with disability. (upto Rs 1 lakh)
If you are paying for medical treatment of a dependant person (who has disability), you can claim deduction of Rs 50000. If the person has severe disability, you can claim deduction of Rs 1 lakh
This deduction is allowed for yourself, spouse, children, parents, brothers and sisters.
Section 80DDB – Deduction for medical treatment of specified disease (upto Rs 60000)
If you are incurring expenditure for medical treatment of specified disease such as AIDS, cancer, neurological diseases, etc., you can claim deduction upto Rs 40000. The limit is increased to 60,000 in case of expense incurred for a senior citizen.
This deduction is allowed for individual, the spouse, children, parents, brothers and sisters.
Section 80E – Deduction for interest on loan taken for higher education.
If you have taken education loan for yourself, spouse, or children, and paying interest on such education loan, you can claim deduction u/s 80EE for a maximum of 8 years.
The loan must be taken from any financial institution or any approved charitable institution for the purpose of higher education and for the purpose of higher education.
Section 80EE – Interest on Housing Loan sanctioned during FY 2013-2014 (New)
This is newly inserted section, wehre you can claim deduction for home loan interest paid upto Rs 1 lakh if your loan is sanctioned during FY 2013-2014 and Value of the property is below Rs 50 Lakh and maximum loan sanctioned should be Rs 25 lakh. Read my article on 80EE deduction
Section 80G – Deduction for donations to certain funds, charitable institutions, etc.
If you are making donations to charitable institutions, NGO, government relief schemes etc, you may be eligible to claim deduction upto 50% or 100% of the donation amount. (depending on charity). For e.g. , donation to funds like Prime Minister’s National Relief Fund enjoy 100% deduction and NGOs such as Helpage India, CRY etc is approved for only 50% deduction.
Although, there is no ceiling on the amount that can be claimed as deduction, in some cases the total deduction is limited to 10% of the gross total income of the donor.
From 01-4-2013, u/s 80G (5D), you claim deduction for donation exceeding Es 10000 only if it is made by mod other than cash (by cheque, DD etc)
Section 80GG – Deductions of rent paid
If you are self-employed, oe employee who donot receive HRA, you can claim deduction for your house rent paid, upto maximum of Rs 2000 per month.
The amount of Rs 2000 is very less in today’s condition and government should review this limit.
Section 80GGC – Deduction for contribution made to political parties
If you have made any donation / contribution to any political party, you can claim deduction u/s 80GGC. There is no limit for this deduction , but the payment must be made other than cash.
Section 80TTA – Deduction for Interest on Savings bank Account (upto Rs 10000)
Under this new section 80TTA, you can claim deduction for Interest earned earned inSavings account upto Rs 10000. Please ntoe that such Interest is taxable & should be shown as Other Income and then the deduction should be taken u/s 80TTA upto Rs 10000.
Read my article on 80TTA deduction
Section 80U – Deduction for disabled person
If you are suffering from physical disability, then you can claim deduction of Rs 50000 or Rs 1 lakh under Section 80U of Income Tax Act. You need to submit the medical certificate in prescribed format.
Section 87A – Tax rebate of Rs 2000
If you taxable income is less than Rs 5 Lakh, you can claim a tax rebate of Rs 2000 under this new Section 87A.
Read my article on 87A rebate / tax credit
Section 24 – Interest paid on a second home loan is fully deductible
If you have taken home loan & the property is self-occupied , then you can claim deduction for home loan interest upto Rs 1.50 Lakhs.
But, if you take loan for buying second house, buys a second house and give it on rent, you can claim FULL Interest as deduction. The 2nd house is deemed to be let out and rental income or deemed rental income needs to be shown under “Income from house property”. But at the same time, you can claim FULL Interest against such income.
How to Claim these deductions
If you are a salaried employee, you can submit the receipts to your employer, and they can consider the deduction while deducting Tax.
Alternatively, you can claim the deduction while filing your Income Tax returns.
Now, you cannot attach any documents with Income Tax returns, you cannot attach these receipts with return. Just claim the deduction and keep the receipts with yourself, in case ITO ask for it later during assessment.
If you have any tax related queries, please use the comments box below & post your query.