As the end of the financial year FY23 approaches, taxpayers are scrambling to save income tax before March 31. While Section 80C of the Income Tax Act is the most well-known option for tax savings, other alternatives are available to taxpayers.
For those who have already reached the deduction limit of Rs 1.5 lakh under Section 80C, other options become necessary. Section 80CCD provides an additional deduction of Rs 50,000 for investing in the National Pension System (NPS). Additionally, taxpayers can claim deductions of up to Rs 2 lakh on the interest and Rs 1.5 lakh on the principal amount of a home loan.
Under Section 80D, taxpayers can receive discounts on Mediclaim for themselves or senior citizen parents. They can receive a rebate of Rs 25,000 or Rs 50,000, respectively.
For ordinary taxpayers, interest up to Rs 10,000 per year on savings accounts remains tax-free. Senior citizens can claim a deduction of up to Rs 50,000 on the total interest earned in a financial year under Section 80TTB. Additionally, interest on education loans taken for post-secondary education of children is tax-exempted under Section 80E.
Knowing these options beyond Section 80C becomes essential for those who have already reached their deduction limit. Taxpayers can explore these options to maximize their tax savings before the financial year ends.
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