There are plenty of other options to save tax that align with your goals such as saving for retirement, spending on your children's education or providing for your elderly parents' healthcare.

There are plenty of options to save tax other than just good old Section 80C. The government in order to encourage people to save and invest in one’s own long-term well-being, gives incentives for setting aside a sum for a rainy day. This includes saving for retirement, taking steps for ensuring the safety of one’s family, paying medical bills, funds in saving account and money earned on deposits, owning a home among others.

Here let’s take a look at five such steps available to all tax-payers for saving tax:

National Pension Scheme

The National Pension System (NPS) is a pension cum investment scheme launched by the government to provide old age security to the citizens. It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based return. The scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA). National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.

Under Section 80CCD(1B), a taxpayer can claim deduction up to Rs 50,000 on the amount deposited under the scheme. It is to be noted that the deduction is over and above deduction under Section 80CCD(1) but the same cannot be claimed under both sections.

Saving tax on Health insurance

In case no one in the family is above 60, tax deduction up to Rs 25,000 can be claimed on medical insurance premium paid for cover under Section 80D. This includes any health insurance such as mediclaim, family floater, or critical illness plan for spouse, children and self. If the eldest member of the family is above 60 years, this deduction limit is increased to Rs 50,000. However, thi deduction on gross income under Section 80D is Rs 1 lakh if parents and the taxpayer are above 1 lakh. It is to be noted that any health check-up upto Rs 5000 can also be claimed for deductions but it needs to be within the overall deduction limit.

Tax deduction for education loan

The interest on education loan taken by the taxpayer to educate oneself, spouse or children is eligible for deduction from the total income under Section 80D. There is no ceiling on interest to be considered for deduction.

The deduction, however, is available for interest paid on loan taken for higher studies. The Income Tax, “higher education means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so.”

Deduction on interest on home loan

Under Section 80C, a deduction of up to Rs 1.5 lakh can be claimed on the principal amount part of the monthly instalment paid for a home loan and the interest is deductible up to Rs 2 lakh under Section 24. The tax benefit can be availed if the possession of the house is within 5 years from the date of the loan.

Income from savings, deposits

Interest income earned from deposits can also be claimed for deduction from total gross income under Section 80TTB of the I-T Act. The upper limit for this deduction is Rs 50,000-per-year. For senior citizens, however, the deduction is available only under Section 80TTB and not 80TTA.