Ways to Save Tax Other Than Section 80C Investments
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Kotak Assured Savings Plan

Tax Saving Options other than Section 80C

Tax Saving Other than 80C: Learn more about Tax Saving Investments other than 80C, Investment Schemes, Exemption Limit and others.

  • Jan 28, 2022
  • 1,162 Views

Section 80C is one of the most widely used tax-saving strategies. Investment possibilities are available under Section 80C for those looking to lower their tax obligations. The list of exempt investments included in this section is rather extensive; just a few examples include life insurance payments, PPF contributions, five-year term deposits, and ELSS programs.

There is a catch, though.

You are limited to ₹1,50,000 in total exemption through Section 80C options. You can deduct an additional ₹50,000 by including NPS investments (Section 80CCD), bringing your overall deduction to ₹2 lakhs. The two lakh exemption—is it sufficient?

All about Tax Saving Investments other than 80C

The most well-known section of the Income Tax Act of 1961 is Section 80C, which allows for a maximum rebate of ₹ 1.5 lakh on various loan products and other investment instruments.

You should be aware that there are a variety of alternative tools available to help you lower your taxable income. You can raise your annual savings through such tax-saving strategies outside of 80C options by filing significant income tax returns.

Since the Income Tax Act continues to maintain several provisions for tax returns, a person might not be simultaneously aware of the rules. Due to unnecessary tax payments, they may lose money as a result, which would lower their annual savings.

These are all the alternative investing choices to section 80C.

1. Interest Income Generated from Savings Account Deposits

Section - 80TTA

Limit – ₹10,000

Under Section 80TTA, the total amount of interest earned from savings account deposits is deductible. However, this deduction from taxable income is only allowed up to ₹10,000 yearly.

If you have multiple savings accounts with various banks, the cumulative total of interest is considered and taxed as “income from other sources.”

Only the excess amount over the cap, if such interest income exceeds ₹10,000 in a year, is taxed at rates based on total yearly income.

2. Interest Component Paid Towards Education Loan

Section - 80E

Limit – No limit

Under this clause, income used to pay the interest portion of student loans is not taxable. Depending on the amount of money needed, a loan like this for schooling may be secured or unsecured.

It should be emphasized, nevertheless, that these exemptions are only given for the first 8 years of debt repayment. Any additional money used to pay the interest burden is taxed.

Education loans that qualify for these deductions must be acquired in the name of the specific person and may be used to pay for the higher education costs of the person, their spouse, or their children. Besides the 80C option, it is one of the most well-liked tax-saving plans.

3. Sum Assured on Maturity of Life Insurance Plans

Section - 10(10D)

Limit – Entire maturity amount

Under Section 10, a tax credit can be claimed for the total sum assured that is paid out at the maturity of a life insurance policy or the untimely death of an insured individual (10D).

If, however, the death benefit is received after April 1, 2012, and the entire value premium costs are less than the full sum assured, the death benefit is not subject to tax calculations.

If the insurance was purchased before April 1, 2012, the premium costs must be lower than 20% of the total sum insured to qualify for section 10 exemptions (10D).

4. Expenses Incurred Towards Treatment of a Disabled Person

Section - 80DD

Limit:

₹75,000 for 40%-80% disability

₹1,25,000 for higher than 80% disability

Individuals and Hindu Undivided Families (HUF) paying for the treatment and wellbeing of a disabled family member can claim exemptions on total income spent to cover such expenses under Section 80DD.

The coverage limit is determined based on the percentage of disability, wherein people having 40-80% disability are eligible for deduction up to ₹75,000.

Families hosting a person having a disability higher than 80% can claim up to ₹1.25 Lakh inclusive of all related expenses. Such claims are granted only to the family of such dependent individuals.

List of Tax Saving Options under Section 80

Some of your investments provide benefits beyond the anticipated profits. Taxes can be avoided as well. Investments under the Section 80C option are a prime example of this type of investment. A Hindu Undivided Family and an individual are both eligible for this deduction (HUF). Deductions are accessible in some of the significant investments, including

  • Investments in Public Provident Fund (PPF)
  • Children’s tuition fees
  • National Saving Certificates (NSC)
  • Life insurance premium payment
  • Senior Citizens Savings Scheme(SCSS)
  • Unit Linked Investment Plans (ULIPs)
  • Equity Linked Savings Schemes (ELSS)
  • Employee’s share of Provident Fund contribution

The Indian Income Tax rules provide tax deduction options for all tax-paying individuals. Nonetheless, most of the citizens know and avail of the deductions worth ₹1.5 lakh that are accessible under section 80C tax saving. However, there is no need to worry if you exhaust your limit of ₹1.5 lakhs. There are other options other than the tax benefits under 80C that you can go for as a tax-paying individual.

Tax saving with NPS under Section 80CCD (1B)

Tax-paying citizens can save an extra amount of up to ₹50,000 if they invest in the National Pension Scheme that can go over and above the ₹1.5 lakh tax benefits mentioned under Section 80C in Income Tax. This guarantees an exemption of ₹2 lakhs.

Tax reserve funds on Health protection expenses under Section 80D

Section 80D of the Income Tax Act, apart from the 80C exemption, provide deductions from an individual’s income towards the instalment payments of a health protection scheme.

Tax reserve funds on reimbursement of an Education loan under Section 80E

If your income falls under the tax bracket and the exemption under 80C is exhausted, this is another option for you. Getting education loans is normal these days, and people who seek this after their schooling are given a tax deduction on the reimbursement under Section 80E. This deduction, apart from the 80C tax-saving, is additionally accessible by taking education loans from financial institutions and not from relatives or companions and family members.

Tax investment funds on the Interest part of the home loan under Section 24

Property holders with a home loan can guarantee a deduction under Section 24 of the annual expense on the part of their home loan. On the off chance that the property for which the home credit has been taken is leased or considered to be leased, no higher cut-off for a deduction is mentioned. As a citizen, you can take an overall allowance interest sum under Section 24.

Tax investment funds on revenue reimbursement on home advance for first-time proprietors under Section 80EE

If you are a first-time mortgage holder and do not know what 80C in Income Tax is, you can try and have a look at this option. You are not ought to possess some other house property on the date of the assent of loan from a monetary establishment. This provides deductions under Section 80EE of up to ₹50,000.

Exemption under 80C is a common deduction availed by taxpayers. Still, fortunately, you have many other ways of getting additional exemptions under the above-mentioned sections if you overshoot the limit of ₹1.5 lakhs!

Conclusion

You can save money in a number of ways besides Section 80C, which will eventually improve your overall wealth. Most of these instruments can also be used to make investments, which lowers costs and increases profits. Now that you know all about the different saving investments, it’s time to make the right decision and choose the best saving investment for your family.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Importance of Savings Plan You Need to Know

What is the difference between TDS and TCS?

Who Should Invest In Savings Plan

Best Savings plan for the middle class in India

धारा 80सी आयकर अधिनियम, 1961

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What is Salary Protection Insurance and Why You Need It

How to File Income Tax Return without Form 16

What Is Advance Tax and How Is It Calculated?

How to File Income Tax Return - Everything You Need to Know

Types of Riders in Insurance Policy

How to Save Tax on Salary Arrears?

Tax-Savings Investments and Options in India

What is the Difference Direct Tax and Indirect Tax

How to e-Verify your Income Tax Return

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

How to File Form 10E for Tax Relief on Salary Arrears?

Pradhan Mantri Suraksha Bima Yojana

Should one prefer a guaranteed savings plan over monthly income schemes?

Income Tax Benefits for Doctors

Have You Considered Term Insurance a Part of Your Tax Planning?

All you need to know About Tax on Inheritance

5 Popular Tax-Saving Schemes in India

Income Tax Exemption for Physically Handicapped Dependent

Types of Income Tax Return (ITR) Forms

Do Beneficiaries Pay Taxes on Life Insurance?

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

Section 80G of the Income Tax Act

What is EEE in income tax? 5 tax-free investment options to become crorepat

Can You Get Term Insurance Without Income Proof?

What is Tax Deduction at Source (TDS)?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

What is the Maximum Maturity Benefit in Assured Savings Plans?

All You Need To Know About Assured Savings Plan

How to File Income Tax Return for First Time Tax Payers

All You Need to Know About Section 80C

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Income Tax Deductions for Disabled Persons Under Section 80U

What is Section 10D of the Income Tax Act?

Why Tax Planning Should Be an All-year Round Activity

How to Calculate returns on an assured savings plan?

What are Direct Taxes? How to Avoid being Overtaxed?

Tax Benefits for Startups in India

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

What is ITR & How to File Income Tax Return?

Tax Exemption and Scope of Coverage

How to save tax for salaried person?

Tax Planning and Tax Benefits of Life Insurance

How to File ITR Online

Tax Saving Options for Salaried Employees

What is Form 16B?

What is indirect tax and its types?

8 Things to Help You Select a Savings Investment plan

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Section 80E: Tax Exemption on Interest on Education Loan

How to create a savings plan and make good investment choices

How can I get Form 16B from traces?

Understanding Tax Exemptions in ULIP (Old and New)

What is ITR 5 Form and How to File ITR 5?

Tax Saving for Self Employed in India

Problems People Face with Tax Returns after a Job Change

What is TDS Exemption Limit?

Insurance and Endowment: Everything You Need to Know!

What To Do If Your TDS Is Not Deposited With The Government?

Section 16 of the Income Tax Act (ITA), 1961

इनकम टैक्स रिटर्न कैसे फाइल करें?

Guaranteed Return Plans-Why is it a must for you?

How to Get Form 16?

How to Check Income Tax Refund Status Online in India

List of Important Income Tax FAQs

Budget 2019: Impact on the Common Man in India

Basics of Guaranteed Savings Plan

Challan 280 - How to Use Challan 280 to Pay Income Tax

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Investing Lump Sum Amount

What is TDS Refund Process?

Tax Season is Coming- Know How to Save Tax

Tax Saving Guide for 2019-20

ITR 1: Sahaj Form

Why is Form 16 Important?

Are Financial Planning and Tax Planning the Same Thing?

ITR 2 Form – Complete Guide

Union Budget Highlights – 1st February 2022

Tax Saving Tips: Best Ways to Save Income Tax for 2021

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Post Office Savings Scheme - All You Need to Know

आयकर स्लैब 2021-2022

Top 8 Tax-Saving Methods in India- Budget Planning

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

भारत में महिलाओं के लिए सरकारी योजना

Guide for Tax Calculation on your Salary

TDS Due Dates of FY 2022-23 For Return Filing

Money Saving Tips for Single Women

Tax-Free Income in India

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Save Income Tax by 31st March: Here Is a Checklist

What are the Different Types of Taxes in India?

How can NRIs prevent double taxation in India?

Home Investment Plan to Buy Dream Home

What is the Percentage of Tax Deducted at Source (TDS)?

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

Why January Is an Important Month for Saving Tax?

ITR-6: Guide to filing ITR-6 Form online

How to View 26AS and Download Form 26AS Online?

What are Deferred Savings Plans?

Financial Benefits and Government Schemes Every Woman in India Should Know

Tips to plan your savings in 2022

Difference between Section 80C, 80CCC, 80CCD & 80D

What is Rule 132 of Income Tax? How Does it Affect You?

Tax Benefits of ULIP Plans Available for NRIs

What is Form 26AS - All You Need To Know

Should you prefer a Guaranteed Savings plan over monthly income schemes?

How To Save Tax Using Life Insurance?

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

Penalty For Late Filing TDS Return

Difference Between Guaranteed and Assured Returns

How to File TDS Return?

How much gold can you keep at home? Limits and income tax rules explained

When Should TDS be Deducted and Who is Liable to Deduct it?

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

धारा 80डी आयकर अधिनियम, 1961

What is a savings plan?

Tax Benefit of Investing in Term Plan

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

What is the Difference between Form 16 and Form 16A?

How to Boost Your Savings with Guaranteed Results

Interest Imposed Under Sections 234A, 234B and 234C

Income Tax Filing Using Multiple Form 16

Sub-sections Under Section 80C of the Income Tax Act, 1961

A Comprehensive Guide to Understand the ITR 7 Form

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

How to File Form 16 for Salaried Employees?

Financial Planning and Best investment options for Housewives

Tax Deductions You MUST Know

What is the TDS Rate on Salary?

How to e file ITR on Income Tax Government Portal

9 Unusual Investments you Didn't Know for Saving Taxes in India

How to Check Income Tax Returns Status Onine?

What is Section 80C - Explained in Detail

What is TDS Slab?

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

How to create wealth through a savings plan?

How To Save Tax Better with 80C

E-Filing of Income Tax Returns in India

Section 80C Deductions as per Income Tax Act, 1961

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

What is capital gains tax, and how it works?

What is Section 80CCC of the Income Tax Act 1961

How to View 26AS and Download Form 26AS Online

Easy ways to make personal savings plans

Income Tax Exemption for Disabled

How to Download Form 16?

All about TDS Payment Online & Due Dates

Excess TDS Deduction – Claim TDS Refund

What is Form 16A?

What is Section 80C Deduction Limit?

Section 44AD of Income Tax Act for AY 2021-22

TDS rules on the sale of jointly owned property

How to file Form 16 online?

How Much Money This Budget 2019 Can Help You Save

All about TDS on Salary under Section 192 – Kotak Life

Is PF Withdrawal Taxable for NRI?

How to Pay Advance Tax Online in India

Income Tax Filing For NRI in India

Saving Income tax in 2017 - 18

3 Tips to Buy Guaranteed Savings Plan

How to Check Income Tax Refund Status Online in India

Presumptive Taxation for Business and Profession

Income-Tax Liability- The Difference Between Gross Income & Total Income in Calculating Income Tax

Things to Do After Filing Income Tax Returns

What Investment Options Come with Tax Incentives?

Impact of GST on Life Insurance in India

What is Section 80C Deduction?

Income Tax Deductions Under Section 80C

Tax Structure in India

A Complete Guide for Filing ITR 3 Form

9 Income Tax Myths That Could Cost You Money while Filing returns

How Do Assured Savings Plans Work and Why You Should Consider One?

Income Tax Deduction Under Section 80CCC In India

How to Save Income Tax with Insurance