When it comes to tax savings, more is always better. Thankfully, the government of India has made several tax-saving provisions, to ease the burden of taxpayers. While section 80 C is one of the best tax saving provisions under the Income Tax Act, there are several other effective, yet lesser known tax saving provisions offered by the government. Spreading your taxes over multiple tax saving avenues is the most effective method to plan your taxes. If you want to be a smart tax saver, make sure to utilize these tax provisions: –
Section 80D: Payment towards Health Insurance Plans
Deduction under section 80D of the Income Tax Act deals with tax deductions on premium paid towards a Health Insurance Policy. Health Insurance premium paid for yourself and family members is eligible for a tax deduction of up to of Rs 25,000 per year. Additionally, if you are paying premium towards the policy of your elderly parents, you can claim an additional deduction of Rs 25,000. The maximum tax deduction limit for senior citizens under this section is Rs 50,000.
However, remember to pay the Health Insurance premium by any mode other than cash. Also, make sure that the Insurer is approved by either the central government or the Insurance Regulatory and Development Authority of India (IRDAI). As an IRDAI approved Insurance provider, you can buy and enjoy tax savings under Section 80D.
Section 80E: Interest paid on education loan
If you have taken up an education loan or student loan from a financial institution, you are eligible for a tax deduction on the interest you pay. This deduction can be availed for yourself, spouse, children or a student whose legal guardianship is vested in you. The best part about Section 80E is that there is no limit on the amount eligible for a deduction. However, this deduction is applicable only on education loans taken for higher education.
Section 80G: Charitable donations
To encourage the spirit of charity, the Indian government allows tax deductions on charitable contributions. As an Indian taxpayer, you are eligible for this deduction under Section 80G of the Income Tax Act. You can claim this deduction irrespective of your income source (i.e. legal earnings). However, make sure to furnish a stamped receipt as proof of donations while filing for tax returns.
Section 80GG: Rent towards accommodation
You can claim a tax deduction under Section 80GG of the Income Tax Act if you are staying in a rented accommodation. However, this deduction is only applicable to salaried employees who do not get House Rent Allowance (HRA) from their employers as part of their salaries.
With Finserv MARKETS, buying a health insurance policy online is easy, convenient and a completely hassle-free process. So why wait? Head over to our website and buy a health plan for yourself and your loved ones, today!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”