Income tax savings FY2023-24: 5 tax-savings options other than Section 80C

 

Go beyond Section 80C for more tax deductions

Section 80C is the most well-known tax deduction that salaried individuals usually use to save income tax. The tax deduction limit of Section 80C under the Income-tax Act, 1961 is Rs 1.5 lakh every financial year.

If you have already exhausted the limit of Section 80C, where can you invest to save tax in the current financial year? Here are some of the options for you.

Do keep in mind that you have to invest by March 31, 2024, to save income tax for the financial year 2023-24.

Tax deduction for investing in NPS

You can invest in the National Pension Scheme (NPS) and get a tax deduction of Rs 50,000 under Section 80CCD. This is over and above the limit of Section 80C.

Tax deduction for investing in health insurance plans

If you pay health insurance premiums for yourself or your family, you can claim tax deductions against them.

Under Section 80D, you can get a tax deduction of up to Rs 25,000 for paying the health insurance premium for yourself or your family which includes your spouse and children. If you pay health insurance premiums for your parents (below 60 years), you can get a claim for a tax deduction of up to Rs 25,000. For senior citizen parents, the tax deduction can go up to Rs 50,000 under Section 80D in a financial year.


Tax deduction for preventive health check-ups

Did you know that you can get a tax deduction for preventive health check-ups? It qualifies for deduction under section 80D. Every taxpayer is allowed to claim a maximum of Rs 5,000. This is within the overall limit of Section 80D.


Tax deduction under Section 80TTA

Section 80TTA offers a tax deduction to individuals and HUFs (other than those covered under Section 80TTB) of up to Rs 10,000 in a financial year on the income earned from interest on savings accounts opened with a bank, post office, or cooperative society.


Section 80G: Tax deductions for donations made to certain funds, temples

If you have donated to a fund notified by the central government under Section 80G, then you would be eligible for a deduction of the amount donated. Do note that it should not exceed 10% of the adjusted gross total income.

This deduction is also available for donations given for the renovation of temples, mosques, and churches, which are approved by the central government.

If you have donated to an institution carrying on scientific research or to a university or college which is approved by the government (under sections 35(1)(ii), 35(1)(iii), 35CCA, 35CCB) for the time being, then the amount so contributed would be eligible for deduction under Section 80GGA.



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