Popular Tax Saving Options Other Than Section 80C

Opting instruments in addition to the common Section 80C investment options give you the opportunity to boost your tax savings significantly. However, do keep in mind that opting for additional investments does mean that your disposable income might decrease a bit in the short-term. But in the long term, you may be able to reap significant benefits that can help you secure your financial future. Here is a short list of tax-saving options beyond Section 80C that you can consider to decrease your tax liability for the financial year:

In order to avail the tax benefits of the various sections other than Section 80C mentioned above, you would need to make certain investments or expenses. The details of such tax saving investments and expenses that you need to make are as follows:

• NPS Tier 1 Account Investments
  

  If you are looking to avail the tax benefits of Section 80CCD (1B), you can invest up to Rs. 50,000 annually in Tier 1 account of the NPS. This benefit is in addition to the tax benefits of NPS under section 80C. Also, under this section, you can use NPS for the limit of Rs. 1.5 lakhs. This mix of opportunities will help you avail a total tax deduction benefit of up to Rs. 2 lakh annually.

• Corporate NPS Account
  

  If your employer offers you the opportunity to avail a Corporate NPS account, you can look forward to availing additional tax benefits u/s 80CCD (2) of the Income Tax Act. This tax benefit is in lieu of the employer contribution to your Corporate NPS account with a maximum limit of up to 10% of your basic salary plus DA annually and up to 14% for Government Employee subscribing to Government NPS account. This contribution provides tax benefits in addition to the total Rs. 2 lakh NPS tax benefit u/s 80CCD (1) and 80CCD (1B) mentioned above.

• Corporate NPS Account
  

  If your employer offers you the opportunity to avail a Corporate NPS account, you can look forward to availing additional tax benefits u/s 80CCD (2) of the Income Tax Act. This tax benefit is in lieu of the employer contribution to your Corporate NPS account with a maximum limit of up to 10% of your basic salary plus DA annually and up to 14% for Government Employee subscribing to Government NPS account. This contribution provides tax benefits in addition to the total Rs. 2 lakh NPS tax benefit u/s 80CCD (1) and 80CCD (1B) mentioned above.

• Purchase Health Insurance Premium for Section 80D Benefits
  

  Getting insurance for your health can save you a significant amount in future medical expenses. In addition, health insurance premiums offer tax deduction benefits under Section 80D. This 80D benefit can also be availed in the case of mediclaim policies and critical illness riders of health policies.

However, the limitation for claiming tax deductions under section 80D depends on the age of individuals covered under the health insurance plan. Below are details of the 80D deductions that can be availed:

Happiness is having the option of saving the deducted amount from your hard-earned money. There are plenty of income tax saving investments via which you can save a few bucks and you must understand these options carefully. Other than section 80C, there are numerous options via which you can save an extra buck and increase your total wealth over time. Most of these tools even serve as investment tools.