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Have You Reached Your Section 80C Cap? Look Over These 10 Investment Options to Save on Taxes

<p>Taxpayers are looking for various ways to lower their taxes as the current fiscal year draws to a close.</p>
<p><img decoding=”async” class=”alignnone wp-image-530910″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-have-you-reached-your-section-80c-cap-look-over-these-10-investment-options-to-sav.jpg” alt=”theindiaprint.com have you reached your section 80c cap look over these 10 investment options to sav” width=”1017″ height=”678″ title=”Have You Reached Your Section 80C Cap? Look Over These 10 Investment Options to Save on Taxes 3″></p>
<p>There are several methods available under Indian income tax regulations to reduce your taxable income. However, most taxpayers know about and take advantage of the Rs 1.5 lakh deduction allowed by Section 80C for investments made in public provident funds, life insurance, fixed deposits, national pension schemes, and more.</p>
<p>Still, most of us don’t take advantage of all the tax breaks available to us.</p>
<p>Since we were not aware of any other options, we typically ended up claiming the Section 80C deduction.</p>
<p><strong>alternative to Section 80C, the following are alternative tax-saving strategies:</strong></p>
<p><strong>80CCD Section</strong></p>
<p>Tax deductions are available for contributions made to national pension schemes (NPS). This section’s deduction limit is Rs. 50,000. This is more than the Rs. 1,50,000 maximum total deduction allowed by Section 80C.</p>
<p><strong>80D Section</strong></p>
<p>Medical expenses and health insurance premiums are deductible from taxes. Depending on the age and kind of taxpayer, the deduction restrictions might be Rs 25,000, Rs 50,000, Rs 75,000, or Rs 1 lakh.</p>
<p><strong>80DD Section</strong></p>
<p>You may be able to claim tax deductions for expenses related to the care and rehabilitation of your dependents who have impairments. The deduction ceiling is Rs 75,000 for those with 40% to 80% handicap and Rs 1,25,000 for those with more than 80% impairment. The severity of the impairment determines these amounts.</p>
<p><strong>80DDB Section</strong></p>
<p>Tax deductions are available to taxpayers who have certain conditions and must pay medical expenses for themselves or their family. The deduction cap is Rs 40,000, and for senior citizens, it may go up to Rs 10,000,000.</p>
<p><strong>80E Section</strong></p>
<p>You may deduct interest paid on student loans from your taxes. The deduction is available for loans taken out for higher education by the taxpayer, their spouse, their children, or a student for whom the payee is a legal guardian. Deductions from this have no maximum, however there are specific conditions that must be met.</p>
<p><strong>80EE Section</strong></p>
<p>First-time homeowners are free from taxes under this clause. This sum exceeds the limit of Rs 2 lakh that may be repaid for interest on a home loan as stipulated by Section 24 of the Income Tax Act. There is a Rs 50,000 deduction limit.</p>
<p><strong>80G Section</strong></p>
<p>Contributions made to reputable charitable organizations are deductible by taxpayers. This provision applies to both persons and businesses. There is no limit on the amount of contributions deducted for digital modalities, such as bank transfers. However, the maximum amount that may be contributed in cash per year is Rs 2000.</p>
<p><strong>80GG Section</strong></p>
<p>People are eligible to have their rent paid for their residence deducted. If the employee does not get HRA from their company and does not own a property in the community in which they live or work, they are eligible for this deduction. There are restrictions on the deduction limit.</p>
<p><strong>80GGA Section</strong></p>
<p>Donations to organizations that support rural development or scientific research are deductible for both individuals and companies. The gift must be made to a reputable organization or group. The whole amount donated, or Rs 10,000, whichever is smaller, is the deduction limit.</p>
<p><strong>80GGB Section</strong></p>
<p>In India, contributions made to electoral trusts or political parties are tax deductible. Deductions from this have no maximum amount.</p>

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