Budget 2021 classroom: How to save income tax other than 80C; check these 10 options
New Delhi: Union Budget 2021, the most anticipated financial event in the calendar year, is all set to be announced on February 1. Finance Minister Nirmala Sitharaman is scheduled to present the Budget 2021 in Lok Sabha at 11 AM.
The one thing that the common man will be eagerly waiting to hear from the finance minister during Union Budget 2021 presentation is the announcement on taxation. We shall all get to know what is stored in FM’s kitty. For the moment, we could look at 10 other options for tax saving purpose.
The aggregate amount of deduction admissible under 80C, 80CCC AND 80CCD (1) is restricted to maximum limit of Rs 1.5 lakh. However, there are 10 other options, which if used appropriately, can help you save taxes most used tax-saving section –80C. These other sections will provide you the window for additional tax-saving exemptions besides 80C.
Check out 10 options to save income tax other than Section 80C
Under section 80D, you can claim benefits under Health insurance premiums. You can claim deduction up to Rs 25,000 for self-insurance, spouse, and dependent children. Extra deduction of Rs 25,000 is allowed for parents aged below 60. Furthermore, you can claim upto Rs 1 lakh for you and your parents aged above 60.
Under section 80DD, you can claim benefits under Expenses on a handicapped dependent. For disability up to 80% you can claim a fixed deduction of Rs 75,000 and fixed deduction of Rs 1.25 lakh for severe disabilities.
Under section 80E, you can claim benefits under Education loan interest payment. For higher education loan, deduction upon the loan interest is allowed without any upper limit for deduction.
Under section 80EE, you can claim benefits under Home loan interest payment for first time home-owners. This option is available only for individual tax payers and not for HUF, AOP, company. You can claim deduction up to Rs 50,000 over and above the Rs 2 lakh limit under section 24 of the income tax act.
Under section 80G, you can claim benefits under Donations to approved charitable institutes. For donations to certain specified social organisations you can claim deduction till 50% or 100% like the National Defence Fund, Prime Minister’s National Relief Fund, National Children’s Fund.
Under section 80GG, you can claim benefits under Rent paid by employees not having HRA. It has to be lower of –25% of total income or Rs 5000 per month or rent paid exceeding 10 percent of total income.
Under section 80TTA, you can claim benefits under Saving account interest. You can claim maximum deduction of Rs 10,000 if you have account with any bank, post office, or co-operative society.
Under section 80U, Handicapped tax-payers can claim deduction. Rs 75,000 is fixed while for severe disabilities Rs 1.25 lakh is fixed.
Under section 80DDB, you can claim benefits for treatment of specified illnesses. For age up to 60 years you can claim deduction up to Rs 40,000 while for senior and super senior citizens this is allowed upto Rs 1 lakh.
Section 80GGB and 80GGC
Under this section, deductions can be claimed for contributions made to a political party by companies and individuals respectively.
Union Budget 2021 will go paperless as the Finance Ministry has decided not to print the budget documents amid the COVID-19 pandemic. Touted to be a historic move, it will be for the first time in the history of independent India that the budget 2021 papers will not be printed.