Tax Saving Options Beyond Section 80C
Most people stop once they’ve maxed out their 80C investments. It feels like the work is done. You’ve invested in ELSS, maybe bought life insurance and tucked away some money in PPF or EPF. But that’s only one piece of the puzzle. There’s a lot more you can do to bring down your tax burden. And you don’t need to be a finance expert to do it. You just need to look beyond the familiar 80C path. Let’s walk through some smart ways to save tax that can make a real difference by year-end.
- Health insurance is not just for protection
If you're paying health insurance premiums for yourself, your spouse, children or parents, those payments can earn you deductions under Section 80D.
The benefit starts at Rs. 25,000 for those below 60. But if you’re paying for parents who are over 60, you can claim more. The total deduction can go up to Rs. 1 Lakh if both you and your parents are eligible separately.
- Add retirement planning into the mix
Section 80CCD(1B) gives you an extra Rs. 50,000 deduction if you invest in the National Pension System (NPS), over and above the deduction under Sec. 80C. It’s one of the few sections that rewards long-term saving, even if you’ve already used up your 80C limit.
If you’re just starting out or want a disciplined retirement plan, this is one to consider. You also get tax-free withdrawals at retirement, which adds long-term value.
- Your home loan can reduce more than just rent
Buying a house is a big commitment, but it comes with tax perks. Under Section 24, you can claim up to Rs. 2 Lakh per year on interest paid for a self-occupied home loan. First-time buyers also have access to an additional deduction of up to Rs. 1.5 Lakh under Section 80EEA.
If you’re already repaying a loan, make sure you’re not just claiming principal repayment under 80C, but also these interest-based exemptions.
- Taking care of parents or dependents with disability? You can claim more
Sections like 80DD and 80DDB exist to ease financial strain in these situations. If you’re supporting a dependent with a disability, the deduction can go up to Rs. 1.25 Lakh. For expenses related to serious illnesses, there are provisions under 80DDB that help with cost coverage.
- Renters can claim too, even without HRA
Not all salaried employees get HRA. If you're living in rented accommodation but don't receive HRA from your employer, Section 80GG can help. You can claim a deduction based on rent paid, subject to certain income thresholds and limits. It’s ideal for freelancers, consultants or employees in firms without HRA components.
- Interest from your bank account or deposits can work for you
Savings account interest is usually a small figure, but up to Rs. 10,000 of it is tax-deductible under Section 80TTA. Senior citizens can go further with Section 80TTB, which covers interest from both savings accounts and fixed deposits, up to Rs. 50,000.
- Even your donations can create tax relief
When you donate to approved charitable organisations, Section 80G comes into play. Depending on the type of donation and the organisation, you may be eligible for a 50% or 100% deduction. This can be claimed over and above your 80C tax exemption, giving you additional room to plan better.
- Life insurance payouts may not be taxable
If you’ve received a maturity amount or death benefit from a life insurance policy, it could be completely tax-free under Section 10(10D). However, the conditions vary. For newer policies, the premium paid should not exceed 10% of the sum assured. Always check the policy date and structure to see if the benefit applies.
- Before you decide, check which regime suits you
All of the above deductions are available only under the old tax regime. If you’ve opted for the new regime for lower slab rates, you won’t be able to claim most of these. That’s why it's important to compare both before filing. Sometimes, the old regime turns out more rewarding once all the deductions are considered.
Closing Thoughts
Relying only on 80C is like using just one tool in a full toolkit. Once you’ve covered the basics, look at the other areas where your money is already flowing—rent, premiums, loans or parent care—and see what qualifies. By combining multiple sections that apply to your life, you create a more complete, efficient tax-saving strategy. If you’re unsure where to begin, use a tax-saving calculator to plug in your numbers and get clarity on the best options for your income bracket. Saving tax smartly means being aware, not overwhelmed.
