Maxed Out Section 80C: With the current fiscal year coming to an end, taxpayers are looking for ways to reduce their taxes.
It is possible to reduce your taxable income in India through several methods under the income tax laws. Nevertheless, the majority of taxpayers are aware of and use the Rs 1.5 lakh deduction provided by Section 80C for investments in national pension plans, life insurance, fixed deposits, public provident funds, and more.
The majority of us, however, neglect to take advantage of all tax-saving opportunities.
Maxed Out Section 80C: Other tax-saving measures besides Section 80C include:
We usually stopped after claiming the Section 80C deduction since we were unaware of other options.
Section 80CCD
Tax deductions can be claimed for contributions to National Pension Schemes (NPS). The deduction limit under this section is Rs 50,000, exceeding the total deduction cap of Rs 1,50,000 allowed under Section 80C.
Section 80D
Depending on the age and type of taxpayer, health insurance premiums and medical expenses may be deducted for tax purposes up to Rs 25,000, Rs 50,000, Rs 75,000, or Rs 1 lakh.
Section 80DD
Your dependents with disabilities may qualify for tax deductions for the costs they incur in caring for and recovering. According to the degree of disability, the deduction limit for those with 40% to 80% disability is Rs 75,000; for those with more than 80% impairment, it is Rs 1,25,000.
Section 80DDB
In the case of elderly individuals, the deduction limit may exceed Rs 10,00,000 for medical expenses paid for themselves or their families due to specific diseases.
Section 80E
Taking out loans for higher education is deductible from taxes, whether it was taken out by the taxpayer, their spouse, their children, or a student for whom the payee serves as a legal guardian. There is no upper limit on the deductions, however certain requirements must be met.
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