Finance Minister Nirmala Sitharaman may increase the limit of section 80C of the Income Tax Act. At present, you can save tax by investing Rs 1.50 lakh annually in investment instruments covered under section 80C. Taxpayers have been demanding for a long time to increase the limit of section 80C. They believe that the 80C limit was increased about seven years ago. Things have changed a lot since then. Therefore, there is a need to increase this limit. However, we are telling you about other investment avenues other than 80C, which can help you save tax.
Section 80D
This section of income tax helps you save tax through health policy. You can claim deduction up to Rs 25,000 by purchasing a Mediclaim policy for yourself, wife and children. If your parents are above 60 years of age, you can claim an additional annual deduction of Rs 50,000 on a mediclaim policy for them. If your parents are below 60 years of age, you can claim an additional Rs 25,000 for a mediclaim policy. Apart from this, you can claim tax deduction of Rs 5,000 per annum for health check-ups under this section.
Section 80DD
Tax deduction can be claimed for a disabled dependent under section 80DD of the Income Tax Act, 1961. Fixed tax deduction of Rs 75,000 can be claimed on disability up to 80 per cent. Fixed deduction of Rs 1.25 crore can be claimed in case of severe disability.
Under this section, there is a facility to claim deduction on the interest payment of education loan. There is no limit on the amount of deduction. The deduction can be claimed on the interest portion of the EMI of the education loan in a financial year. For this, you will have to get a loan repayment certificate from the bank from which you have taken the education loan.
Section 80EE
Under this section of the Income Tax Act, you can claim tax rebate on the interest portion of the home loan taken for residential house property. This section allows rebates up to Rs 50,000 in a financial year. You can avail this rebate till you repay the entire home loan. This deduction is in addition to the rebate up to Rs 2 lakh available under section 24.
section 80G
Deduction can be claimed under this section on donations made to charitable institutions. Deduction up to 50% is allowed in case of recognized social organizations. Donations made to National Defense Fund, Prime Minister’s Relief Fund and National Children’s Fund can claim 100% deduction.
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