Budget 2022 Expectations: This year, according to media reports, the tax deduction limit is most likely to be increased to Rs 2 lakh from Rs 1.5 lakh earlier.
New Delhi: Budget 2022 will be announced on February 1 by Finance Minister Nirmala Sitharaman. Presented under Article 112 of the Indian Constitution, it is the most important financial event in the whole fiscal year. This year, the hopes are even higher as the world moves a step away from the pandemic that has grappled the world for over two years now.
For salaried people, the Budget is even more important because it brings out new rules regarding the taxation policy of the government. The Income-tax rules are changed, bringing a substantial change in the lives of salaried employees.
The tax deduction admissible under section 80C, 80CCD (1) and 80CCC is Rs 1.5 lakh. However, according to media reports the limit is most likely to be increased to Rs 2 lakh. Here are 10 other options, apart from Section 80C, to save income tax.
10 Ways To Save Income Tax Other Than Section 80C
Section 80DD
This provision is for handicapped dependents. Till 80 per cent disability, individuals can claim a deduction of Rs 75,000 under Section 80DD. They can also avail the benefit of a fixed deduction of Rs 1.25 lakh for severe disabilities.
Section 80D
This provision is for tax deductions on health insurance premiums. Taxpayers can save Rs 25,000 for self-insurance. Over that amount, they can also save Rs 25,000 for parents below the age of 60 years. For parents above 60 years of age, a deduction of Rs 1 lakh is allowed.
Section 80EE
This provision is for tax deductions under home loan interest payment. But it is only limited to first time home buyers. The taxpayers can claim an additional deduction of Rs 50,000 under this section.
Section 80E
This section can be used if you have taken an education loan. Importantly, there is no upper limit on deduction under this section.
Section 80GG
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This section is for the people who do not get HRA in their salaries. Those who pay the rent, lower than 25 per cent of the total income of up to Rs 5,000 per month, can avail of the benefits.
Section 80G
This section is for donations to charitable institutions. Depending upon the institution, you can claim a deduction of 50 per cent or 100 per cent of the donated amount. These include donations made to National Children’s Fund etc.
Section 80TTA
This section is for the savings account holders. People who have savings account in any ban can claim a deduction of Rs 10,000.
Section 80DDB
This section can be availed of if you are undergoing treatment for any special illness. If you are aged below 60, you are allowed a deduction of Rs 40,000. Over 60 years, you are allowed a deduction of Rs 1 lakh.
Section 80U
This section is also for handicapped taxpayers. They can claim a deduction of Rs 75,000 under this section. And in case of severe disabilities, they can claim Rs 1.25 lakh.
Section 80GGB and Section 80GGC
Under this section, the deductions can be availed of in case of donations to any political party. This is applicable to both companies as well as individuals.
