Tax-Saving Beyond 80C: Top Tax-Free Investments Other Than Section 80C

The very first thing that comes to people's minds when thinking about tax planning is Section 80C. But once you have utilised that Rs 1.5 lakh limit, it feels like putting a full stop to your tax-saving opportunities. The good news is that beyond 80C, there are many tax-saving investments other than 80C to help you maximise your deductions and keep more of your hard-earned money. So if you are wondering, "Apart from 80C, how to save tax?" this guide is made for you. This guide will discuss tax-saving beyond 80C and some of the best tax-free investments other than 80C!

6 Tax-Free Investments Other Than 80C

Let’s explore some lesser-known for tax-saving beyond 80C that could complement your financial plan:

1. Section 80D: Health Insurance Premiums

   While we desire good health all year round, a well-planned health insurance policy does more than just pay off medical expenses arising out of unforeseen events. Under Sec 80D, you can claim deductions for the premium paid on health insurance covering yourself, your spouse, your children, and even your parents. This deduction can go up to Rs 25,000 for a policy covering self, spouse, and children, while for senior citizen parents, it is Rs 50,000 plus.
   This deduction is one of the most potent options for tax-saving beyond 80C. In these times of growing medical expenses, investing in health insurance provides dual benefits:
   • It offers financial security against any medical emergency
   • Helps in savings on income tax
   Health insurance is a good option if you are considering any alternative investment for tax-saving beyond 80C.

2. Utilising NPS for Additional Tax Deductions

   The National Pension Scheme (NPS) is an excellent initiative towards securing your retirement and tax-saving benefits. Contributions made towards NPS fall under various tax benefits, especially in Section 80CCD. Apart from the Rs. 1.5 lakh limit under Section 80C, contributions made to NPS in Section 80CCD(1B) provide an additional deduction up to Rs. 50,000. Therefore, NPS tax saving would be a clever move for people who have already exhausted their 80C limit but would like to get maximum tax benefits.
   NPS helps construct a retirement corpus and provides a disciplined approach to long-term investment. The additional Rs. 50,000 deduction suits those looking for tax-free investments other than 80C. Also, as the government regulates NPS, it becomes one of the safer options for investors who focus on security in their investment choices.

3. Section 80E: Education Loan Interest Deduction

   If you or your children have taken an educational loan, you are eligible for a tax deduction on the interest paid under Section 80E. This deduction is available for a higher education loan only. The loan may be granted for studies in India or abroad. It can be claimed for eight years or until you pay the whole interest amount, whichever is earlier.
   Unlike other deductions, Section 80E has no upper limit, making it a great alternative for tax-saving investments other than 80C, particularly if one is paying a high interest rate on an education loan.

4. Interest on Home Loan (Section 24 and Section 80EEA)

   Owning a house can be both a dream and an excellent investment. To encourage home ownership, the government has provided for a deduction on home loan interest under Section 24(b) with a maximum permissible limit of Rs. 2 lakh per annum.
   Additional deduction under Sec 80EEA up to Rs. 1.5 lakh for interest on loans sanctioned between dates specified will continue to be available for first-time homebuyers. This is one of the best benefits of tax-free investment apart from 80C. This can certainly bring a striking difference in your tax planning-be it buying a house for personal use or for investment purposes.

5. Section 80G: Donations

   Giving back to society is always a great experience, and under Section 80G, you can do that along with tax savings. Donations made to certain charitable organisations can help you claim deductions up to 100% of the contributed amount. Deductions under Section 80G are most appropriate for individuals who wish to lower their taxable income through contributions to a worthy cause.
   Donations will be a wonderful option if you wish to invest in tax-saving investments other than 80C. By helping others, you find another way to legally and ethically minimise your tax liability.

6. Savings Under Section 80TTA and 80TTB - Interest on Savings Accounts and Deposits

   The interest earned on savings accounts is negligible but qualifies as a tax deduction under Section 80TTA. Individuals can claim a deduction of up to Rs. 10,000 on the interest earned in savings accounts with banks, post offices, or cooperative societies.
   Section 80TTB provides that a senior citizen can claim a deduction of up to Rs. 50,000 on interest income earned on deposits, including savings accounts, fixed deposits, and recurring deposits. Thus, this deduction could apply to your savings plan if you are looking for tax-saving investments other than 80C.

Maximising Your Tax Savings with a Comprehenasive Approach

Investing in tax-saving investments other than 80C can give a diversified portfolio and considerable tax relief. Using a combination of different sections for your tax-saving strategy helps you save on taxes while working toward a holistic financial plan. If you want to know how much tax you can save by investing in these instruments, use an income tax calculator. It can guide you about where to invest and how much to invest.

Wrapping Up

Tax planning is all about availing the maximum benefit available for deductions and exemptions, and that's the very reason to explore all tax-saving investments other than 80C. You can create an all-inclusive tax-saving plan by strategically utilising the deductions available under Sections 80D, 80CCD, 80E, 80G, etc.

And yes, the right tools can make it much easier. Use an income tax calculator to intelligently calculate your deductions and possible tax liabilities. So, the next time anyone asks you, “Apart from 80C, how to save tax?” you will have an answer ready.

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