Best Income Tax Saving Options for 2016 Other Than 80C

Best Income Tax Saving Options for 2016 Other Than 80C: Most people depend on 80C section for income tax savings. There are many other sections under which one can save more income tax. Although 80C is the most popular section to get income tax benefit, one can also follow other sections to get more income tax benefit.

The Most Popular Income Tax Saving Options Other than 80C are Given Below:

80D-Health Insurance Premium Paid:

In this section, a person can claim health insurance or medi claim policy premium paid for his direct family and also for parents and can get a maximum of 15,000 yearly for direct family and 15,000 more for parents. If the parents are above 60 years age, then they can get up to 20,000. So under section 80D a total of 35,000 can be claimed.

80DDB – Treatment of critical illness:

This option can be used only when any of your dependent is suffering from any of the diseases like Neurological, Parkinson, Malignant Cancers, AODS, Chronic Renal Failure, Hemophia, Thalassemia and cronic diseases. Then you can claim the treatment amount under section 80DDB. The maximum allowable limit is 40,000 in general case and maximum 60,000 for senior citizens. If any health insurance policy is used then you cannot use this saving option.

80E – Interest of Education Loan:

One can take education loan for getting income tax exemption for the interest they are paying. The principle amount repaid can’t be claimed for income tax benefit. The entire interest amount can be exempted and a maximum of 8 years is allowed. The candidate should go for a full-time course to avail this income tax saving option.

80GG – Don’t get HRA, then claim your house rent:

One can use this 80GG section in 2 cases. First is, if your company is not paying HRA (House Rent Allowance) as part of the salary. And the Second is if you are staying at your own home and you have a 2nd house and you have rented that and earning monthly rent. In such case one can use section 80GG to get tax benefit. They can claim tax deduction of Rs 2000 or 25% of annual income or rent paid 10% of annual income whatever is less.

80CCG – Rajiv Gandhi Equity Savings Scheme:

Under this investment scheme one can get 50% invested amount as income tax exempted. The maximum investment limit is 50,000 and one can get max 25,000 saving option. The amount invested under this scheme is invested in stock market. The lock-in period is for 3 years. One can go for this scheme if their also your annual income is less than 10 lakh.

80TTA – Interest earned on Savings Account:

Under this Section, one can save the interest amount earned in the bank savings account deposit. One can claim that money, but the limit is very less only up to 10,000 tax exemption can be made. Under budget 2012, this scheme is declared.

80EE – Home loan interest Additional Deduction:

In this scheme one can get extra 1 lakh benefit for the home loan interest paid. This section is for new home buyers. In case you are not able to reach the limit then it can be carry forwarded to next financial year.

For more information about tax benefits and tax savings

Tax Benefit on Home Loan-Housing Loan Tax Benefit Section 24, 80EE and 80C
How to Choose the Best Tax Saving Investment Options Under 80C Section
Best Income Tax Saving Options for 2016 Other Than 80C
Best Income Tax Saving Options for 2016 Other Than 80C Best Income Tax Saving Options for 2016 Other Than 80C Reviewed by amara sangati for Rating: 5