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What are the options available for tax saving after exhausting 80C limit

What are the options available for tax saving after exhausting 80c limit?

Mar 14, 2016 by Rambabu Kopparthy, Chennai  |   Taxation

Here are some options that are available after exhausting 80C Limit.

  • You can save an additional Rs 50,000 by investing in National Pension Scheme (Section 80CCD)

  • If you have not invested in equities before you can save up to an additional Rs 25,000 by investing up to Rs 50,000 Rajiv Gandhi Equity Scheme (RGESS). 50% of your RGESS is tax deductible.

  • You can save upto Rs 200,000 on home loan interest payment (Section 24)

  • An additional deduction of Rs 50,000 available for first time home buyers was introduced in the 2016 Budget (Section 80EE)

  • You can save Rs 25,000 (Rs 30,000 for senior citizens) on health insurance or Mediclaim premium (Section 80D). If you are paying Mediclaim premiums for your own family and also your parents, you can claim deductions for both.

  • You can claim deduction of upto Rs 40,000 (Rs 60,000) for treatment of some specified diseases (Section 80DDB)

  • You can claim deduction on the entire amount of interest paid on educational loan. The loan can be for yourself, your spouse and children’s higher education. (Section 80E)

  • If you are paying rent and do not get HRA benefit from your employer, you can claim deduction of Rs 60,000 on rent paid. (Section 80GG. In the 2016 budget the Finance raised the 80GG limit from the Rs 24,000 to Rs 60,000)

  • You can claim 50% or 100% income tax deduction on donations made to Charitable Organizations (Section 80G)

Please consult with your chartered accountant or tax consultant to check which deductions may be applicable for you.

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