Everyone can save tax through the top 5 savings options without Section 80C for this current financial year. Have a look and utilize those income tax sections to save additional tax along with Section 80C before March 31st, 2024.
Are you interested in investing in tax savings to reduce your income tax? Section 80C of the Income Tax Act 1961 is a popular way to save taxes. However, there are five other ways to save taxes. Keep reading to find out about these ways.
Section 80C allows deductions up to Rs 1.5 lakh in a financial year, but if you exceed this limit, you can still invest in one or two schemes to save more tax. If you’re looking to make tax-saving investments, it’s important to know that for this financial year 2023-24, investments must be made before March 31, 2024, to claim tax savings.
Apart from Section 80C, the other ways to save taxes are:
National Pension System (NPS)
Through this scheme, you can get tax deductions up to Rs.50 thousand under Section 80CCD, which is available in addition to Section 80C.
Health insurance
You can claim tax deductions on health insurance if you buy it for yourself or your family. Under section 80D, you can get tax deductions up to Rs.25 thousand for health insurance premium payments. Deductions up to Rs.25 thousand can be availed if health insurance is taken for parents under 60 years of age. That means a maximum exemption of Rs.50 thousand is available through Section 80D.
Preventive Health Checkups
You can also claim tax deductions for preventive health checkups, up to a maximum of Rs.5000 per taxpayer under Section 80D. However, this should be within the total limit of Section 80D.
Interest Earned from Savings Accounts
Individuals opening savings accounts in banks, post offices, and cooperative societies and earning interest on them, Hindu undivided families can get exemptions under Section 80TTA. However, this applies to those not covered by Section 80TTB. Exemptions can be claimed up to a maximum of Rs.10 thousand.
Donations
Donating to funds under section 80G notified by the central government can result in tax deductions. However, the donation should not exceed 10% of the adjusted gross total income. Also, Section 80G applies to donations for renovation of temples, mosques, and churches approved by the Central Government.
