Exhausted Section 80C Income Tax saving options? No problem! Try these new ways if you are filing ITR this year
March, 12th 2019
Income Tax saving options: The current financial year is set to end this month. You still have 20 days left to claim income tax rebate through different investment options.
The current financial year is set to end this month. You still have 20 days left to claim income tax rebate through different investment options. With the help of some other provisions of the Income Tax Act, you can claim a rebate on investment and expenditure even after exhausting the Rs 1.5 lakh limit under Section 80C.
Here are some of the options you can explore:
Under this section, you can claim tax rebate up to Rs 25,000 in lieu of all the health insurance premiums paid in the year for your spouse and children. You can also claim income tax exemption up to Rs 25,000 separately on the health policy premium purchased for parents under 60 years of age. And, in case your parents are senior citizens, then you can claim up to Rs 50,000 on this item.
Under this section, you can claim tax exemption on the interest of education loan paid for self, spouse or children's education. However, if you have paid interest on education loan, you can claim tax rebate in the same financial year. You can take advantage of this tax rebate for eight years from the date of starting to pay the education loan. There is no maximum limit on the amount for which tax rebate can be claimed on this investment.
Salaried persons, who get HRA from the employer, can claim the tax rebate on this amount under Section 80GG. If HRA is not included in salary from the employer and you are renting, then also you can claim the tax exemption under Section 80GG of Income Tax Act. For this, you have to make a declaration in Form 10 BA.
Section 80 CCD
For investment in the National Pension System, you can claim tax exemption by investing an additional Rs 50,000, which is more than the Rs 1.5 lakh prescribed under 80C.
Section 80 DD
Under this section, you can claim exemption up to Rs 75,000 in lieu of the amount spent on the treatment of any disabled person in the family. For the treatment of the critically disabled person in the family, tax exemption up to Rs. 1,25,000 can be claimed.
Section 80 TTA
Under Section 80TTA, deduction of Rs 10,000 on interest income from savings account can be claimed by an individual and HUF. The deduction is allowed on interest earned from a saving account with a bank, co-operative society carrying on banking business or a post office. This is not applicable to interests earned from Fixed Deposits, Recurring Deposits or any other time deposits.
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Senior citizens can claim tax deduction under Section 80 TTB of Income Tax Act on the money deposited in Savings Account, Post Office Deposit, Term Deposit and Recurring Deposit. The maximum limit is up to Rs 50,000.
Section 80G, 80GGA and 80GGC
Under Section 80G, tax deduction can be claimed on donations to different funds or temples. Under Section 80GGC, one can claim the refund on donations to political parties. Donations to government-approved universities and institutions also qualify for tax relief under Section 80 GGA.