Exhausted 80C tax deduction restrict? Here are 5 extra choices to cut back tax burden

Most of us take advantage of tax deduction choices obtainable beneath Section 80C of the Income Tax Act. As a end result, we frequently find yourself exhausting this restrict. However, we are able to additional cut back our tax outgo with different tax saving choices. Let’s have a look at a few of these choices for individuals who have already exhausted the restrict of ₹1.5 lakh Section 80D: Health insurance coverage premium Section 80D supplies tax deduction on medical health insurance premiums of as much as ₹25,000 paid for your self, partner and dependent kids. An further deduction of as much as ₹25,000 could be claimed for insurance coverage premiums paid in your mother and father. Moreover, the medical health insurance premium paid for fogeys who’re senior residents is eligible for a better tax deduction of as much as ₹50,000. Also Read | What commerce freedom did to Bihar’s farmers Section 80CCD (1B): Additional deduction for NPS investments While investments within the National Pension System (NPS) of as much as ₹1.5 lakh per monetary yr qualify for tax deduction beneath Section 80C, a further tax deduction of ₹50,000 is accessible for investments in NPS Tier I Account. This deduction is over and above the ₹1.5 lakh obtainable on NPS Tier I Accounts beneath Section 80C. Section 80GG: Deduction on lease for these not receiving HRA Naveen Kukreja – CEO& Co-founder, Paisabazaar.com mentioned part 10(13A) permits workers receiving House Rent Allowance (HRA) to say a tax deduction on the lease paid by them. However, these residing in rental lodging however not receiving HRA as part of their wage, or non-salaried individuals residing in rented lodging can declare a deduction for his or her rental bills beneath Section 80GG of the Income Tax Act. “The deduction quantity can be the least of the next — ₹5000 per 30 days, 25% of your revenue and precise lease paid in extra of 10% of the full revenue,” he said. Section 10(13A): Availing exemption on HRA by paying rent to parents Taxpayers who are staying in accommodation owned by their parents can reduce their tax outgo by claiming tax deduction under Section 10(13A) by paying rent to their parents. However, keep in mind that the rent needs to be paid to the parent in whose name the property is registered. Moreover, the rental income has to be disclosed by the parent while filing his tax returns. Such taxpayers should ensure to maintain proper records of paying rents to their parents. They should enter into rental agreements with their parents, preserve the rent receipts and preferably pay their rents through bank transfers. This will help you to stay prepared for any scrutiny by tax officials. Section 80DDB: Deduction for medical treatment of certain diseases “Section 80DDB allows taxpayers to claim a deduction for treatment of eligible diseases as specified in Rule 11DD of Income Tax Act for self or any of his dependents. The deduction can only be claimed on submitting relevant prescription from the list of specialists specified under section 80DDB. If the person requiring treatment is a senior citizen, then the maximum deduction available is ₹1 lakh p.a. For others, the deduction has been capped at ₹40000,” mentioned Kukreja. Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our e-newsletter.