Most of us think that tax saving can be availed through Section 80C only and they miss to save tax more than Rs.1.5 lakhs. The main reason they do not choose those tax saving options which are other than 80C and help them to save tax over and above 1.5 lakhs.
These tax saving options are either hidden in the larger tax saving options or are under the clauses which are not very well known.
- Under Section 8D where we get, Rs.75000 tax deduction on health, insurance expenses by you and your family which includes your spouse and dependent children. Apart from expenses on health insurance you also get benefit for your expenses on preventive health check-up of up to Rs.5000 under section 80D. You can get this, benefit if your family’s health insurance expense is less than Rs.75000 a year and have gone through a preventive health check-up in this year.
- Section 80GG provide tax benefits to salaried individuals who does not get HRA or for those self-employed professionals who do not get benefit of HRA. Under section 80GG these individuals can claim a deduction for rent paid to the extent of Rs.5000 per month.Conditions for claiming deduction under Section 80GG –
Neither the individual nor his spouse should own a house at the place of employment and you should not have any self-occupied house at any other place.Deduction available is the least of the following
- Rent paid minus 10% of adjusted total income;
- Rs 5,000/- per month;
- 25% of adjusted total income*
*Adjusted Gross Total Income is arrived at after adjusting the Gross Total Income for certain deductions, exempt incomes, long-term capital gains and income relating to non-residents and foreign companies.
One more tax saving option is by paying rent to your parents if you are living in your parents house.
If you are living in a property which is in the name of one of your parent then you should pay rent to your parents. In this case there are two tax saving benefits. First is obvious you will get HRA benefit for this and you can save tax on that, second your parents can, claim up to 30% of tax deduction on this rental income for, maintenance and repair purposes.
- One mode not so popular tax saving option which is deduction on stamp duty and registration charges under Section 80C. If you have purchased or constructed a house property, stamp duty and registration charges and other expenses which are directly related to the transfer are allowed as a deduction under Section 80C. The maximum deduction of course is Rs.1.5 lakhs, deduction available only in the same year when the actual expenses occur.
- Section 80DDB you can claim deduction to the extent of Rs. 40,000 for medical expenses incurred for specified ailments for self and dependent relatives. Dependent relatives here mean spouse, parents, children as well as siblings. This deduction is for actual treatment cost and not on the health insurance premium. The deduction limit under 80DDB has been increased to Rs.100,000 if the amount is spent for the treatment of a senior citizen (person of age more, than sixty years)
- Section 80DD is allowed on the expenditure towards medical treatment, nursing, training and rehabilitation of a dependent with disability or payment or deposit to specified scheme for maintenance of dependent handicapped relative. You can have the tax saving as below:Where disability is 40% or more but less than 80% – fixed deduction of Rs 75,000.Where there is severe disability (disability is 80% or more) – fixed deduction of Rs 1,25,000.To claim this deduction a certificate of disability is required from prescribed medical authority.