We have seen the tax saving ideas that come under section 80C, let?s now check the other options too. These deductions are provided by Income Tax Act, 1961.
Mediclaim policies come under this section. You can claim a tax exemption for an amount up to Rs 15000 that is being spent on premiums paid for you?re your self, your spouse or other dependents such as children or parents. For senior citizens this amount is a little higher and extends up to Rs 20000.
If you have dependent person who is physically disabled, you can claim the premium that is paid for medical treatment or Life Insurance Premium paid for them. If they have 40% disability, an amount of Rs 50,000 is exempted from tax and if the disability is 80% you can get an exemption of Rs 1,00,000 for a year.
If you are working in the private sector you can claim tax reduction for the medical treatment you have spent during the year. An amount of Rs 40,000 can be claimed under this section. For senior citizens the limit is higher and extends up to Rs 60,000.
If you have taken education loan for higher education for your self or for any dependents, you can opt for getting exempted under this section. You can get an exemption for 8 years from when you have taken the loan.
This is applicable for graduation and post graduation studies in streams such as engineering, management, applied sciences, mathematics or statistics. After 2011, vocational courses also have been included in this section; however you would not be able to get exempted for part time courses.
Donations made to trusts, charitable institutions and education institutions and so on can be claimed under this section. You can get an exemption from 50 to 100% of the amount you have spent in such a manner.
You can donate to funds such as Prime Ministers Drought Relief Fund, Prime Ministers Relief Fund, and National Children?s Fund and so on.
If you are staying in a rented house and you or none of your dependents own a house in India or abroad, you can claim an HRA of Rs 2000 per month or 25% of total income under this section.
If you contribute for the development of a political party or a trust that is engaged with the electoral process, is eligible for tax exemption under this section.
This is applicable to people with more than 40% of specified disability such as Blindness, Vision problem, mental illness, Loco motor disability, Hearing impairment and so on. A flat Rs 50000 is deducted and in severe conditions the deduction can be claimed up to Rs 1 lakh.
In 2012, a new section 80CCG was added which gives an advantage to new investors. According to this section you would be able to claim a tax exemption of up to Rs 50000 if your GTI is less than or equal to Rs 10 lakhs. This would be helpful to you only for the first year of your entry into the stock market; later on you would not be able to claim tax exemption in this section.
Well, we have glanced into every avenue available to reduce taxes, it is now left to you to find the one that would suit you the most and claim exemption. You can also plan for the year to come from now on so that you save tax in the right way.