Hello Readers!!
Tax planning, whenever we talk about this topic, most people suggest investing in tax-saving securities included under Section 80C of the Income Tax Act 1961. The securities under Section 80C, help investors claim deduction up to Rs. 1.5 lakh.
Well, very few people know that the tax-saving option is not only limited to securities under Section 80C, but there are more tax-saving opportunities that further help them reduce their tax liability.
Some tax-saving options other than Section 80C Instruments:
- Section 80D- Mediclaim Premium
- Section 80E- Interest On Education Loan
- Section 80G- Donations To Charitable Institutions
- Section 80GGC- Donations To Political Parties
- Section 80EE- Interest Repayment on House Loans
- Section 80CCD1(B)- National Pension Schemes
Let us know about the above tax-saving options in brief.
Mediclaim Premium Under Section 80D!
Insuring yourself and your family under Health Insurance not only saves you from the burden of medical expenses but also taxpayers to claim deductions under Section 80D. The Maximum deduction claim against health insurance is decided based on the policy type.
The maximum deduction you can claim when you, your spouse, and your dependent children are all below 60 years is up to Rs. 25,000. However, if the eldest member is over 60 years, this limit gets increased to up to Rs. 50,000 for a self, spouse, and dependent children.
In case your health insurance policy includes your parents and parent are below the age of 60 years then you can claim an additional deduction for the premium paid for parents of up to Rs. 25,000, and if your parents are above 60 years in age, the deduction increases to Rs. 50,000.
Interest On Education Loan Under Section 80E!
Interest paid for an Education loan taken for self, for children, for a spouse, or for any student to whom you are a legal guardian, can be claimed for tax deduction under Section 80E. The only criteria for this deduction are that the education loan taken must be for higher studies from approved financial institutions. There is no upper limit to the amount you can claim under this section.
Donations To Charitable Institutions Under Section 80G!
Section 80G allows for a tax deduction on donations made by the person to the approved charitable institutions. In this case, the taxpayer can claim deductions of up to 50% or 100% of the donation amount, depending on the charitable institution you contribute towards. The necessary rule that must be followed here is that the person should make the donations via cheque as donations made above Rs. 2,000 through cash are not qualified as deductions.
Donations To Political Parties Under Section 80GGC
Donation made to political parties in the name of party fund is eligible for tax deduction under Section 80GGC. The only condition applied in this case is that the donation must be done via any ode except cash.
The political party to which contributions are made should be registered under Section 29A of the Representation of People Act (RPA) 1951. The contributions do not have any upper limit.
Interest Repayment On House Loan Under Section 80EE!
If you have taken a house on loan and you don’t have any other property belonging to your name, then you will be taken as a first-time homebuyer, you can claim an additional deduction of up to Rs. 50,000 under Section 80EE towards repayment of home loan interest.
The eligibility criteria to avail of this deduction are that your home loan should be Rs. 35 lakhs or less, and the value of the property should be not more than Rs. 50 lakhs.
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For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).