InvestorQ : Any other option for saving tax for salaried people other than 80C?
Purvesh made post

Any other option for saving tax for salaried people other than 80C?

Answer
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Archita Jajjoo answered.
8 months ago


Salaried individuals are allowed a deduction under various other sub-sections of section 80 as well. These are few other deductions that are available to salaried individuals:

1.Deduction u/s 80CCD(1B): Under this section, individuals are allowed a deduction in respect of their contribution to the National Pension Scheme. Taxpayers can claim an additional deduction up to Rs. 50,000. This deduction shall be in addition to the 80C deduction of Rs. 1,50,000.

2.Deduction u/s 80GG: This deduction is available when rent is paid and no House Rent Allowance is received by an individual, the taxpayer does not have any self-occupied house property and neither the spouse nor the children of the taxpayer own any residential accommodation at the place of employment. Least of the following shall be allowed as a deduction:

Rent paid – 10% of Adjusted Total Income.

25% of Adjusted Total Income.

Rs. 5000/- per month.

3.Deduction u/s 80E: If an individual has taken any loan for pursuing higher studies for himself, spouse, children or for a student for whom he is a legal guardian and pays the loan EMI from his income/salary, he shall be allowed a deduction of an amount equal to the actual interest paid. There’s no limit on the amount of deduction that the taxpayer can claim.

4.Deduction u/s 80EE: Under this section, the deduction is available for the amount of interest paid on home loan taken by the taxpayer. The home loan shall be less than Rs. 35 lakhs and the actual cost of the house shall not be more than Rs. 50 lakhs (for FY 2016-17). The maximum deduction allowed under this section shall be Rs. 200,000 along with an additional deduction for interest under section 24. Please check other conditions to avail of this deduction.

5.Deduction u/s 80D: An individual or HUF can claim a deduction of Rs. 25,000 under this section for self, spouse and dependent children. An additional deduction is available for insurance of parents of Rs. 25,000 (if below 60 years of age) and Rs. 50,000 (if above 60 years of age).


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AR Kadam answered.
8 months ago


You can save tax under following options

Health Insurance for Self, family and dependent parents under Section 80D - Upto Rs. 75000 per annum

National Pension System under Section 80CCD - Upto Rs.50000

Interest on Housing Loan under Section 24b - Upto Rs.2Lacs